New York Post
20 Oct 2026, 20:45 UTC · 1h ago
Netflix shares tank 7% as streamer reports slower revenue growth, issues weak forecast
Impact · against what's priced in
Netflix faces a valuation correction as growth decelerates faster than the market's mid-teens CAGR assumption. The downward revision of advertising revenue and a weak Q4 profit forecast confirm that the ad-tier is failing to offset structural slowing in core subscriptions.
- NFLX−0.70
Challenges what's priced in
- The price assumes
Revenue growth decelerating from 16.2% toward the low-to-mid teens, consistent with a 13.7% 10-year CAGR.
Q3 revenue growth of 11.8% is the lowest in nearly three years, falling below the 13.7% CAGR the price currently assumes. Additionally, the ad-tier forecast was cut from $3 billion to $2.7 billion, undermining the hope that ads would act as a primary growth lever.
What NFLX's price assumes · Aug 26
