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FinanceNetflix shares plunge over 10% on slowing growth and reduced viewership data disclosure
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Netflix shares fell more than 10% on July 17, 2026, after the company forecast another quarter of slower revenue growth and announced it would reduce the frequency of its viewership data reports to once a year starting in 2027, following the earlier scrapping of subscriber counts. The decline threatened to wipe out $35 billion from Netflix's market value of about $313 billion. Investors reacted negatively to the reduced transparency amid increasing competition from traditional media and YouTube. Netflix's failed attempt to acquire Warner Bros earlier in the year and slow adoption of its ad-supported tier also raised doubts about future growth. Analysts noted a weaker content lineup for 2026 compared to 2025, which featured hits like 'Stranger Things' and 'Squid Games.' At least 18 analysts cut their price targets, though the median target remains about 40% above the current price.
Source report
By: Harshita Mary Varghese Source: Reuters
Netflix shares sank more than 10% on Friday after the company forecast another quarter of slower revenue gains and scaled back viewership data, fueling fears that its industry-beating growth may have peaked.
The stock was trading near a two-year low in early trading. If losses hold, the decline is set to wipe out $35 billion from Netflix's market value of approximately $313 billion.
Key Developments
- Reduced disclosure: Netflix cut the frequency of its viewing-hours report to once a year from twice, starting in 2027. This follows last year's scrapping of subscriber counts, leaving investors with less visibility as competition intensifies from traditional media and YouTube.
- Market reaction: "Whenever you take away a data point from investors when results aren't as good as they have been, you will get punished by the market," said Ben Barringer, head of technology research at Quilter Cheviot.
- Growth concerns: Netflix's failed pursuit of Warner Bros earlier this year has raised doubts about its next phase of growth, amid slow adoption of an ad-supported streaming tier that the company has long touted as a major growth driver.
Stock Performance
- The stock has lost 44% since hitting an all-time high in June 2025.
- It has fallen more than 20% so far this year alone.
Content and Engagement Challenges
After a strong content slate in 2025—including the final season of hit sci-fi series Stranger Things and South Korean drama Squid Game—analysts say the company has a weaker content lineup this year that could weigh on growth.
"Pulling back engagement reporting at the exact moment engagement is in the spotlight gives off a strong 'nothing to see here' vibe," said Mike Proulx, research director at Forrester.
Keeping subscribers engaged is critical for Netflix, which has long traded at a premium to other media companies that command smaller streaming subscriber bases and face ongoing declines in cable TV.
Valuation and Analyst Outlook
- Netflix trades at nearly 20 times expected earnings over the next 12 months.
- By comparison, Walt Disney trades at 13.5 times and Comcast at 6.6 times expected earnings.
- At least 18 analysts cut their price targets after Netflix forecast quarterly revenue and earnings below Wall Street expectations.
- However, the median target remains about 40% above Thursday's closing price.
Reporting by Harshita Mary Varghese and Joel Jose in Bengaluru; Editing by Janane Venkatraman and Devika Syamnath
Source
Yahoo FinanceWestern
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Netflix shares plunge over 10% on slowing growth and reduced viewership data disclosure