Netflix shares fall 8% after a lukewarm earnings report and a change to how it shares viewing data
Netflix shares dropped 8% following a second-quarter earnings report that met expectations but failed to impress investors concerned about long-term engagement. The company is shifting its reporting strategy, moving from twice-yearly to annual engagement reports, while experimenting with short-form content to compete with platforms like YouTube.
Why it matters
Investors are closely monitoring Netflix's ability to maintain viewer attention as the company exhausts traditional growth levers like password-sharing crackdowns.
Shows like "I Will Find You" helped Netflix grow its global viewership by 2% in the first half. Netflix Netflix posted mixed earnings results in the second quarter. Engagement grew slightly, which had been a key focus for Wall Street. The streaming giant has leaned into video podcasts and shorter videos in recent months. Netflix shares fell over 8% after it posted lukewarm second-quarter earnings results on Thursday afternoon. The leading paid streamer was roughly in line with Wall Street's expectations for both revenue and earnings per share, which were based on modest guidance last quarter that had spooked investors. Netflix's stock had fallen 31% in the three months since its first-quarter report. Revenue rose 13.4% to $12.56 billion, just below estimates for $12.58 billion, while earnings per share came in at $0.80 per share, versus analysts' expectations of $0.79 per share, according to Bloomberg.
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