Netflix Stock Drops to 26-Month Low Despite Record Revenue and Beat Profit Estimates

Netflix stock fell to $64.10 on Wednesday, its lowest since August 2024, largely due to a weaker fourth-quarter outlook; the company reported third-quarter EPS of $0.87, beating the $0.82 analyst expectation, while trailing 12-month revenue reached about $50 billion, a 20.4% compound annual growth rate since 2015. However, Netflix projected fourth-quarter EPS of $0.67, missing the $0.73 consensus, and lowered its 2026 advertising revenue target to about $2.7 billion from $3 billion, blaming a slower rollout of ad features; co-CEO Ted Sarandos admitted, "I know that we could do better."