Oct 21 (Reuters) – Netflix (NFLX.O), opens new tab shares dropped about 5% on Wednesday, after the company’s tepid profit and advertising outlook deepened investor concerns about slowing viewership and revenue growth amid stiff competition in the streaming industry.
The stock has declined more than 26% this year and, if current losses hold, the streaming giant is set to shed about $13.4 billion in market value.
The share performance underscores the mounting challenges facing Netflix — from losing a bidding war for Warner Bros Discovery earlier this year to defending its paid subscription model against free digital rivals and competing in an increasingly consolidated streaming market.
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As viewers shift toward free, user-generated platforms such as YouTube and TikTok, Netflix is also contending with changing preferences in favor of short-form video over premium content.
Netflix, which has stopped sharing subscriber numbers since 2025, reported an 11.8% rise in third-quarter revenue to $12.87 billion, in line with Wall Street estimates but the slowest increase in nearly three years.
The company also lowered its advertising forecast for 2026 to roughly $2.7 billion, from about $3 billion projected earlier.
“Growth has clearly slowed at Netflix,” Evercore ISI analysts said in a note.
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