Netflix Stock Hits 26-Month Low, But Revenue Tells a Different Story

Netflix shares dropped to $64.10 on Wednesday, their lowest since August 2024, after the streaming company’s fourth-quarter guidance fell short of expectations even as profit beat estimates. It reported third-quarter earnings of $0.87 a share, above the $0.82 analysts expected, while revenue rose 12% to $12.87 billion, matching forecasts. For the fourth quarter, Netflix forecast earnings of $0.67 a share, below the $0.73 consensus, and said 2026 advertising revenue would be about $2.7 billion rather than $3 billion, blaming slower deployment of ad tools. The shares are roughly 50% below their mid-2025 record of $134.12, though trailing 12-month revenue reached about $50 billion in September.