Netflix Beat Estimates Again; Why Did the Stock Drop 12% Anyway?
Netflix beat earnings estimates again, but shares still tanked on Friday. Here's what spooked investors and why it might not matter.
Overview
Shares of Netflix (NASDAQ: NFLX) fell as much as 12.2% on Friday morning before recovering to a 9.1% decline as of 11:20 a.m. ET. The video-streaming giant delivered a perfectly cromulent Q2 2026 report on Thursday evening, but investors still found reasons to drop the stock price.
Revenue hit $12.56 billion, matching estimates. EPS of $0.80 beat the Street by a penny. Netflix has missed bottom-line estimates about once a year since 2023, and this wasn't one of those misses. Full-year guidance? Unchanged at the midpoint. Operating income growth tracking north of 20%. Every figure fell well within management's Q2 guidance.
Details
Netflix announced it will publish its "What We Watched" engagement report annually instead of twice a year, starting in 2027. In other words, engagement hawks will have fewer data points to obsess over.
Source
Originally published at www.fool.com.