Netflix faces growing competition from Alphabet's YouTube, but co-CEO Ted Sarandos says the two main problems behind its stock slide are internal, centered on creative talent and content hits. The company cut 6% of its workforce and replaced chief content officer Bela Bajaria with former Disney executive Peter Rice, though the article argues these moves cannot fix the issues immediately. In the third quarter, earnings of $0.87 per share beat the $0.82 estimate, while revenue of $12.87 billion was in line with expectations. Fourth-quarter revenue guidance of $13.44 billion fell short of the $13.57 billion forecast, and the full-year advertising revenue outlook was cut to about $2.7 billion from $3 billion. The stock fell 6% premarket after being down 26% this year, and KeyBanc said membership retention remains healthy with a potential re-acceleration in 2027E and into 2028E.
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