Netflix stock drops after Q3 revenue falls short, co-CEO says not all views are 'created equal'

Netflix shares fell over 8% in extended trading after the company's Q3 revenue guidance of $12.86 billion missed Wall Street's $13 billion expectation, with Q3 EPS guidance of $0.82 also below the $0.84 consensus. While Q2 earnings beat estimates at $0.80 per share and revenue grew 13.4% year over year to $12.56 billion, growth is slowing across key markets — the US and Canada segment grew only 10% YoY, the weakest pace in four quarters.

Why it matters: Co-CEO Greg Peters defended engagement metrics by noting 'not all hours are created equal,' citing live events as higher-value but lower-hour content, though analysts expressed disappointment with the overall outlook.