Netflix Just Changed How Often It Reports Engagement. Should Investors Worry?
The streaming giant reported generally decent second-quarter results, but gave light guidance and a reporting change.
Overview
On the surface, Netflix's (NASDAQ: NFLX) second-quarter earnings report wasn't terrible. Revenue came in slightly below expectations, but grew 13% year-over-year, and earnings per share grew by 11% and came in ahead of what analysts had been looking for. Membership growth, pricing increases, and ad revenue growth all contributed to the double-digit growth.
Even when it comes to forward guidance, there's not much to complain about. It gave a full-year outlook in line with its previous forecast and narrowed (but did not lower) its 2026 revenue guidance.
Details
However, there was one item that investors seemed to have fixated on-Netflix's user engagement. And the stock fell by about 10% shortly after the earnings release.
Source
Originally published at www.fool.com.