Following the streaming behemoth’s prediction that its revenue growth would stall, Netflix shares plummeted Friday morning. The company late Thursday released second-quarter results that were largely in line with Wall Street estimates; however, investors concentrated on the guidance for the current quarter, which did not meet expectations. Netflix anticipates an 11.7% increase in year-over-year revenue for the third quarter, a decline from the 13.4% growth recorded in the second quarter and a decrease from growth rates exceeding 17% expected in the latter half of 2025.Netflix anticipates earnings per share of 82 cents for the third quarter, falling short of the 85 cents that analysts had projected.

Netflix shares experienced a decline of up to 12%, reaching approximately $65 in early trading on Friday, marking their lowest point since August 2024. The stock, which entering Friday’s session had experienced a decline of approximately 20% in value since the beginning of the year, was recently down 9%. Netflix’s finance chief, Adam Neumann, minimised concerns regarding the deceleration in growth projections during the company’s earnings call. “There is a little bit of quarter-to-quarter choppiness in growth because last year was more back-half weighted. So that may be a little bit of what you see in the deceleration,” Neumann said.

“But honestly, it’s not what we manage to. We manage to the full year. And halfway through the year, we’re making strong progress against our goals, and we’re tracking to our financial plan for 2026.” Netflix shares have faced significant pressure this year due to apprehensions regarding user engagement and a deceleration in revenue growth. In a letter to shareholders on Thursday, the company indicated its intention to provide updates on user engagement with reduced frequency.