US Stock Movement | Q3 guidance below expectations, Netflix (NFLX.US) opens down more than 10%

According to Zhihu Finance APP, on Friday, Netflix (NFLX.US) opened with a sharp drop of over 10%, marking its biggest decline since April 2022, now trading at $66.19. In terms of news, Netflix released its second-quarter earnings after the U.S. market close on Thursday. Q2 revenue stood at $12.6 billion, up 13% year-over-year, with earnings per share of $0.80, roughly in line with the market consensus. The company expects revenue growth to slow for a second consecutive quarter in Q3, further intensifying investors’ concerns about the future prospects of this streaming giant. For this quarter, the company expects revenue of $12.9 billion and earnings per share of $0.82, both slightly below analysts’ forecasts.

Over the past year, Netflix’s cumulative decline has exceeded 40%. The company's pursuit of acquiring Warner Bros Discovery (WBD.US) and its subsequent financial performance have made investors increasingly worried that this streaming leader has lost its growth momentum. Chief Financial Officer Spencer Neumann stated on the analyst call: “We don’t manage the business on a quarterly basis.” He pointed out that Netflix currently covers only about 45% of its addressable market and accounts for just 5% of global TV viewing time, adding that the company will increase its revenue by $6 billion this year.