Netflix stock sinks after just missing forecasts on Q3 outlook

Netflix reported mixed Q2 results with EPS of $0.80 beating estimates of $0.79, but revenue of $12.56B slightly missed the $12.58B consensus. The stock dropped more than 8% in after-hours trading after Q3 guidance came in below forecasts, with EPS seen at $0.82 vs. $0.84 expected and revenue at $12.86B vs. ~$13B.

Why it matters: The sell-off extends a broader decline — the stock was already down 20% year-to-date and roughly 40% over the past 12 months, weighed down by concerns over plateauing engagement and difficulty retaining viewers for second seasons.