Good morning. Netflix’s stock fell again after the streaming giant reported second-quarter earnings on Thursday, extending a selloff that has erased roughly a third of its value since April. While investors remain concerned about slowing engagement and a softer-than-expected outlook, analysts say the market may be overlooking the company’s long-term growth story.
For Q2, Netflix reported revenue of $12.56 billion, up 13% year over year but just shy of the consensus analyst estimate of $12.58 billion. It posted an operating margin of 33.4%, down from 34.1% in the year-earlier period.
The company forecasts Q3 revenue of $12.86 billion, slightly below Wall Street expectations of roughly $13 billion. It also updated its full-year revenue forecast to $51 billion to $51.4 billion and reiterated its 31.5% operating margin target. Netflix also said it would reduce the frequency of its viewing-hours transparency reports.
Shares closed on Thursday at $74.35—up 1% for the day but down roughly 44% from their June 2025 all-time high—before falling another 8% to 9% in after-hours trading following the release of the earnings report. Despite the selloff, Netflix repurchased about $4.7 billion of stock during the quarter—its largest quarterly buyback on record.
