Netflix shares dropped by more than 9 per cent on Friday morning after the company shared a weaker-than-expected forecast for its future earnings. The drop has raised new worries about whether the streaming giant can keep growing.
The stock drop shows how increasingly difficult it is becoming for Netflix to keep people’s attention. Even though the company has tried new ways to make money—like adding adverts, showing live events, and raising subscription prices—it is locked in a massive battle for viewers. It faces tough competition from traditional media giants like Walt Disney, as well as free apps like YouTube.
With this latest drop, Netflix’s stock price has now fallen by more than 44 per cent since hitting its highest point ever back in June 2025.
Industry experts say the company’s story is losing its spark. Jeffrey Wlodarczak, an analyst at Pivotal Research Group, explained that getting new subscribers is still the most important part of Netflix’s business. However, younger audiences are increasingly choosing to spend their time on free social media platforms instead of watching long movies and TV series.
Experts believe this shift will lead to slower subscriber growth. To make up for the lost momentum, Netflix might have to raise its prices more aggressively and invest even more money into making new shows.
This is the second quarter in a row that Netflix has predicted lower profits and revenue than Wall Street experts expected. Because of these developments, at least 11 financial analysts have lowered their targets for the stock.
Netflix is also changing how much information it shares. Starting in January 2027, the company will only publish its data on how many hours people spend watching shows once a year, instead of twice a year. This follows a previous decision in 2025, when the company completely stopped sharing its exact subscriber numbers every three months.
Financial analysts at Jefferies noted that the first half of 2026 did not do much to calm worried investors. They added that the line-up of new shows for the rest of the year looks weaker than it did a year ago, making investors even more nervous about the company’s future.
