Netflix shares dropped to under $64 after Q3 2026 earnings revealed weaker advertising revenue and a miss on full-year ad sales, now forecast at $2.7 billion. The company is overhauling content leadership and cutting 6% of staff to revive growth.
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01Summary
- 01Netflix stock fell 7% in premarket trading to under $64, the lowest since August 2024, down 30% year-to-date.
- 02Advertising revenue for 2026 is now expected to be $2.7 billion, $300 million below previous forecasts due to slower-than-expected ad product rollouts.
- 03Co-CEO Ted Sarandos replaced content chief Bela Bajaria with Peter Rice, citing a need for better execution on core TV and film content.
- 04Netflix laid off 1,000 workers (6% of headcount) to free up investment in growth areas.
- 05Analysts warn that Netflix faces long-term threats from short-form video platforms like YouTube and TikTok, especially among younger audiences.
02Why it matters
Netflix's stock decline and missed ad targets signal slower growth for a leading streaming service, which could affect pricing, content investment, and the range of shows and films available to subscribers.
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