Netflix shares tumble 13% after weak sales forecast, hit 22-month low

Shares of Netflix came under heavy selling pressure in Friday's trading session, 17 July, plunging 12.6% to a 22-month low of $65 after the streaming giant issued another muted revenue outlook, even as its second-quarter results broadly met Wall Street expectations.

If the losses hold through the close, the stock will register its biggest single-day decline in nearly four years.

For the June quarter, Netflix reported revenue of $12.56 billion, up 13% year-on-year, marginally below analysts' estimates. The growth was driven by higher membership, subscription price increases and rising advertising revenue.

Earlier this year, the company increased subscription prices across all its streaming plans. Netflix said the impact of the price hikes has been in line with its expectations and consistent with previous pricing actions.

Net income rose to $3.40 billion, or 80 cents per share, from $3.13 billion, or 72 cents per share, in the corresponding quarter last year, CNBC reported.

Despite maintaining its position as the world's largest paid streaming platform by subscribers and viewership, Netflix's revenue growth has continued to moderate. The company expects third-quarter revenue to grow 12% and said its FY26 outlook remains broadly unchanged.

Netflix also narrowed its full-year 2026 revenue guidance to $51 billion-$51.4 billion, compared with its earlier forecast of $50.7 billion-$51.7 billion.

The company experienced a relatively weak pipeline of original content during the first half of the year, with several returning series failing to match the viewership of their earlier seasons.

To reassure investors, Netflix highlighted its long-term growth strategy, pointing to recent successes such as 'I Will Find You', which has become the company's most-watched original series launched this year.

The streaming giant is also expanding into new content formats, including live sports and video podcasts. According to the company, podcasts are attracting higher engagement during daytime hours and on mobile devices, while live programming has helped drive subscriber additions.

Netflix shares have remained under pressure since hitting a record high of $134 in June 2025, losing more than 45% of their value. Over the past 12 months, the stock has closed 10 months in the red, resulting in a cumulative decline of 46%.

So far in 2026, the stock has fallen 27%, putting it on track for its worst annual performance since 2023. Despite the sharp correction, Netflix shares are still up about 55% over the past three years, following a remarkable rally of nearly 580% between May 2022 and June 2025.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.

Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copie...