Netflix shares have slid to $66.29, down 29% year to date, even though Q3 2026 GAAP earnings of $0.87 per share beat the $0.8229 consensus and operating margin rose to 34.6% from 28.2%. Investors focused on a Q4 2026 revenue forecast of $13.4 billion and a cut to the 2026 advertising revenue outlook to about $2.7 billion from $3 billion, citing a slower ad product rollout. Netflix repurchased a record $4.8 billion of its stock and lowered its full-year free cash flow forecast to $12 billion from $12.5 billion due to a Q4 real estate transaction. Over the same period, Roku is up 47% and the Communication Services ETF (XLC) is down 9%. The article says the stock's next move depends on whether the ad business ramps up, particularly in the U.S.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Netflixearningsadvertisingshare buybacks
Open a keyword to see other news on the same topic.
Related news
- Prediction: Here's Where The Trade Desk Stock Will Be in 2029
The Trade Desk (TTD) shares trade near $12, down about 91% from their December 2024 record close of $139.51 and about 68% since the end of 2025. Q2 2026 revenue rose just 3% to $715 million while net income fell about 29%, and management guided to Q3 revenue of at least $650 million, a decline of about 12% year over year. Buybacks cut the diluted share count from about 507 million in late 2024 to 470 million by Q2 2026, and the company holds about $1.5 billion in cash and short-term investments with no debt. The author estimates the stock could reach about $16 by end-2029, a gain of about 9% a year, but this depends on a return to revenue growth that management has not forecast; if revenue settles near $2.8 billion with a 10% net margin, the stock could be worth about $7. The author says he still would not buy the shares until management's revenue forecast turns up again.
- Is Netflix Stock a Buy Near Its 52-Week Low?
Netflix (NFLX) reported Q3 revenue of $12.9 billion (up 11.8% year over year), operating income of $4.5 billion (up 37.3%) and EPS of $0.87 (up 47.5%), but its Q4 revenue and earnings guidance fell short of analyst projections. The company also cut its full-year advertising revenue estimate by about $300 million from the previously expected $3 billion, citing a slower-than-expected rollout of some ad product capabilities, and the stock fell sharply after earnings to near its 52-week low. Management is not changing strategy and will rely on original content, especially in the U.S., and recently appointed Peter Rice, a former leader at Fox and Disney, as chief content officer. The article argues Netflix still has the largest streaming subscriber base in the industry, strong pricing power and viewer data, and can grow through live events and advertising, with its ad tier set to launch in 15 new countries in 2027. The author expects the company to address its execution problems over the medium term and says the stock may appeal to investors willing to stay the course.
- Can Netflix Stock Fall 50%?
Netflix (NFLX) stock has lost 46% over the past year while the S&P 500 returned 15.1%, and at $67.05 it sits 42.1% below its highest close of the past year, $115.75. Across 15 market shocks since 2007, Netflix fell an average of 27.8% versus 15.8% for the S&P 500, including a 72% drop during the 2011 US debt ceiling crisis. Recovery from its lowest close took a median of 2.1 months, but 22.0 months after 2011. Revenue reached $49.7 billion over the twelve months to September 2026, up 14.7%, but growth slowed to 11.8% in fiscal Q3 2026. Management cut its 2026 ad revenue forecast to $2.7 billion from $3.0 billion and its 2026 free cash flow forecast to $12.0 billion from $12.5 billion, and said fourth-quarter guidance includes roughly 120 basis points of margin drag tied to the staff cuts that news reports put at about 6%.
- Netflix Stock Is on Track for Its Worst Year Since 2022. Is It Finally a Buy?
Netflix shares closed near $69 on October 20, down about 27% in 2026, and fell about 6% after hours to around $65 following third-quarter results. Revenue rose 12% year over year to $12.9 billion, operating income climbed 37%, and EPS grew 49% to $0.87. The company repurchased $4.8 billion of its shares in the quarter, and free cash flow rose about 8% to $2.9 billion. Revenue growth is still slowing, with fourth-quarter revenue guidance of about $13.4 billion, up 12%, and 2026 ad revenue now expected at around $2.7 billion, down from about $3 billion because some ad features are rolling out more slowly. With a P/E of around 17 to 18 versus about 19 for the S&P 500, the author argues the stock is worth considering and suggests building a position gradually.
- Why Netflix Stock Dropped Today
Netflix (NFLX) shares fell more than 5% on Wednesday after the company cut its full-year ad revenue forecast to about $2.7 billion from $3 billion. Third-quarter revenue rose 12% year over year to $12.9 billion, a sharp slowdown from the 17% growth in the same quarter of 2025, which Netflix attributed to membership additions, price hikes, and its expanding ad platform. Operating margin improved to 34.6% from 28.2%, but the company said this was mostly due to the timing of certain expenses. Earnings per share rose 47% to $0.87, beating estimates of $0.82. Per CNBC, Netflix is cutting about 6% of its workforce to invest in content and technology, and it replaced chief content officer Bela Bajaria with former Disney executive Peter Rice amid intensifying competition from YouTube and other rivals.
- Netflix Is Down 38 % Since Completing Its 10 - For - 1 Stock Split . Here Why the Sell - Off Is Worsening After Its Latest Earnings .
Netflix (NFLX) stock is down 37.9% since completing its 10-for-1 split on Nov. 17, 2025, as of the Oct. 20 close, and fell a further 5.9% to $64.62 in after-hours trading following its Q3 report. Revenue rose 11.8% year over year and operating margin widened from 28.2% to 34.6%, but the 2026 revenue forecast of $51.1 billion sits 0.2% below the prior midpoint. Netflix also cut its full-year ad revenue forecast to $2.7 billion from $3 billion due to a slower rollout of certain ad product capabilities. The article attributes the sell-off to slowing growth, competition from YouTube, and viewing shifting to mobile, with the stock trading at 17 times 2027 earnings.
Related markets
Latest news
- Why Comfort Systems Plunged Today
Comfort Systems (FIX) fell as much as 13.2% on Friday before trimming its decline to 8.9% by 3:10 p.m. EDT, despite beating revenue and earnings estimates for the quarter. Revenue rose 53.7% and EPS grew 68.6% to $13.91, while backlog climbed to $17.8 billion from $14.1 billion three months earlier. The article attributes the sell-off mainly to the announced year-end retirement of Bill George, a founder and longtime CFO, along with a "sell the news" reaction seen across AI-linked stocks this earnings season. Shares are about 38% below their June all-time high and trade at 19.4 times average 2027 analyst earnings estimates.
- Intel Stock Has Moved an Average of 16% the Day After Its Last 3 Reports. Should You Buy Before the Next One?
Intel reports third-quarter results after the close on Oct. 29, and its stock has moved an average of about 16% in the session after its last three reports: down 17% after January, up 24% after April, and down 8% after July. The company beat its own forecasts each time, yet shares fell twice because management's outlook for the coming months carried more weight. The third-quarter revenue midpoint of $16.3 billion is only about 1% above the second quarter, a sharp slowdown, so the fourth-quarter forecast is seen as the key number to watch. At around 44 times expected 2027 earnings, the author argues the share price already reflects a return to growth, and says he would not buy the stock before the report.
- SpaceX Filing Gives Elon Musk the Final Word on Tesla Merger He Says He’s Staying Out Of
SpaceX stated in an SEC filing that any merger with Tesla must be approved by its controlling shareholder, Elon Musk, who holds roughly 85% of voting power. Musk recused himself from both special committees but publicly endorsed the deal, which Reuters reported created a "mess" for the independent process. Both companies formed special committees on October 20 to evaluate a proposed deal that analysts estimate could create a combined entity worth around $3.5 trillion. REX Financial estimates Musk would hold roughly 57% of combined voting power. Tesla shareholders must clear a 50%-of-all-outstanding-shares threshold, with a vote expected at or near the December 3 annual meeting.
- SpaceX Filing Gives Elon Musk the Final Word on Tesla Merger He Says He’s Staying Out Of
SpaceX stated in an SEC filing that any merger with Tesla must be approved by its controlling shareholder, Elon Musk, who holds roughly 85% of voting power. Musk recused himself from both special committees but publicly endorsed the deal, which Reuters reported created a "mess" for the independent process. Both companies formed special committees on October 20 to evaluate a proposed deal that analysts estimate could create a combined entity worth around $3.5 trillion. REX Financial estimates Musk would hold roughly 57% of combined voting power. Tesla shareholders must clear a 50%-of-all-outstanding-shares threshold, with a vote expected at or near the December 3 annual meeting.
- Meta shares are down 9% this week. Here's why Mike Khouw is buying now
Meta shares fell during the week as investors worried about the cost of building AI infrastructure, even though the company recently reported strong earnings. The company's $1.65 trillion market cap lost $135 billion in four sessions. The author sees Muse, Meta's personal AI agent, as potentially valuable given its reach to 3.6 billion daily active users across Facebook, Instagram, WhatsApp and Messenger. Headwinds include a $25 billion lawsuit in New Mexico, a deal with the founder over potential California billionaire's tax liabilities, concerns about debt, and broader AI jitters. He argues the current valuation, at about 20x fiscal-year earnings, already prices in much of this. He outlines selling December strangles at the 580/745 strikes, collecting about $21.30 per share at today's closing prices, a position that profits anywhere between the one-year high and low.
- Robinhood Is Quietly Building 13 Businesses at Once. Here's Why It Matters.
By Q2 2026, Robinhood had 13 business lines each generating at least 100 million USD in annualized revenue, up from one in 2019 and nine in 2024. The author argues that adding products such as options, crypto, Gold subscriptions and credit cards lets the company earn more from each customer without customer acquisition costs. Robinhood ended Q2 with 28.4 million funded customers, up 7%, 4.8 million Gold subscribers, up 39%, and average revenue per user up 24% to 187 USD. Transaction revenue rose 44% to 776 million USD, alongside 389 million USD in net interest revenue and 143 million USD in other revenue, which reduces reliance on trading activity. The author cautions that annualized revenue is the quarter's revenue multiplied by four, so the 13 lines should not be treated as mature businesses each generating 100 million USD.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.