Netflix's own Q3 guidance of USD 12.86 billion in revenue & an EPS of USD 0.82 was already soft enough to disappoint Wall Street back in July. Consensus estimates are hovering around that baseline too.
Total subscriber watch time has plunged from 66 hours a month down to 49 hours.
Netflix management is taking pre-emptive damage control by cutting its workforce by 6%.
Netflix is already down 23% year todate and 43% in the past year. Given how brutal 2026 has been for Netflix and coming off 5 consecutive post earnings declines, the stakes couldn't be higher.
If you currently hold Netflix, it is best to Hold your position and let the dust settles before buying more.
The smartest strategy is to let management outline their plans for 2027 before making a decisive move.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
