Netflix shares slide on disappointing growth forecasts

{"text":[[{"start":6.45,"text":"Netflix shares fell nearly 10 per cent on Thursday despite as-expected earnings after the streaming giant forecast its worst revenue growth in three years."}],[{"start":15.350000000000001,"text":"Its projection of 11.7 per cent year-on-year growth in the third quarter came in below Wall Street consensus and would mark the slowest expansion since 2023."}],[{"start":27.200000000000003,"text":"The stock fell after hours even as Netflix largely met expectations for its second-quarter earnings. It reported price rises in the first half had “gone well”, helping to drive revenue 13 per cent higher year on year in the second quarter to $12.6bn, alongside increased ad revenue. It expects ad revenue to double to about $3bn in 2026."}],[{"start":51.85,"text":"Netflix is facing increased pressure as its shares have declined 21 per cent since January, continuing a slide that has wiped more than $250bn from the company’s value since a peak in the middle of last year."}],[{"start":66,"text":"Investors have worried about increased competition and questions about Netflix’s strategy following its failed attempt to buy Warner Bros Discovery."}],[{"start":null,"text":"

"}],[{"start":74.65,"text":"Netflix’s bid for WBD, ultimately bested by Paramount, was taken by some analysts as signalling a change in direction for a company that traditionally has built rather than bought its businesses."}],[{"start":86.95,"text":"Since then, it has also looked at a bid for Roku, the streamer that Fox then acquired, leading some to ask whether it was confident enough in its existing strategy and worry over the impact of stronger rivals."}],[{"start":99.10000000000001,"text":"Netflix has been piling money into live events and sports as it tries to diversify away from the on-demand streaming that has made it into an entertainment giant."}],[{"start":108.55000000000001,"text":"Viewing grew 2 per cent in the first half to more than 97bn hours — compared with 1.5 per cent growth in 2025 — despite popular sporting events such as the football World Cup shown on rival streamers and broadcasters."}],[{"start":124.80000000000001,"text":"This year’s price rises — in markets including the US, Mexico and Spain — increased a standard subscription in the US from $17.99 to $19.99 a month and raised the cost across all its plans as well as the fees for extra users on the same subscription."}],[{"start":144.10000000000002,"text":"Netflix no longer discloses subscription numbers on a quarterly basis, which means it is not possible to know whether the price increases had a noticeable effect on new customers."}],[{"start":153.95000000000002,"text":"It has recently added content from video podcasts and YouTubers with creators Danny Go! and Salish & Jordan Matter. It has also struck partnerships with publishers including Condé Nast, Hearst and People to add lifestyle content."}],[{"start":167.75000000000003,"text":"Netflix on Thursday narrowed its forecasted full-year revenue range from $51bn to $51.4bn for 2026, which represents 13 per cent to 14 per cent growth, and held to its prediction of a 31.5 per cent operating margin."}],[{"start":184.95000000000002,"text":"The stock fell sharply after its last earnings report in April when Netflix gave a disappointing financial forecast and said founder Reed Hastings would step down as chair of the group’s board in June."}],[{"start":204,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1784257809_8417.mp3"}