Netflix reports lackluster second-quarter earnings as investors express concern over slowing growth and engagement trends.
Netflix reported a lackluster second-quarter earnings report on Thursday, leading to a sell-off in its stock as Wall Street digested a third-quarter revenue outlook that missed analyst expectations. The streaming giant has seen its stock price drop roughly 46% over the past 12 months as investors struggle to find a clear growth story. While Netflix maintains a lead in the streaming market with 325 million global paid members, analysts noted that the company is currently in "no man's land" regarding investor sentiment. Concerns persist over declining viewership for series following their first seasons and a new move to publish viewership statistics only once per year, which some fear reduces transparency. To regain momentum, the company is focusing on its ad-supported tier, live sports monetization, and paid sharing plans. Analysts suggest that a potential acquisition, such as a move on NBCUniversal, could provide the fresh intellectual property needed to satisfy bears and bulls alike.