MarketPR
Netflix (NFLX) guided for 12% revenue growth in the third quarter of 2026, a slowdown from the 13.4% reported in the most recent quarter, while management continues to emphasize live events and games that currently constitute a small fraction of viewing hours.
The stock has lost 42% in the twelve months to September 30, 2026, a period in which the S&P 500 rose 14.4%.
This divergence highlights a shift in how the company describes its business to investors, moving away from a sole focus on hit films and series toward a broader definition of entertainment that includes live programming and interactive content.
On its fiscal Q3 2024 call, management described Netflix as a subscription entertainment business focused on improving its core film and series offering, promising a steady drumbeat of hit titles.
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