Netflix Q2 Revenue Hits $12.56B, But Stock Drops 9% on Tepid Q3 Growth Outlook
NFLX is trading near its 52-week low of $70.86 (4.6% below the low) on elevated volume (1.8× avg).
Summary
Netflix delivered Q2 revenue of $12.56B, up 13% YoY, with net income of $3.4B and EPS in line. Free cash flow was $1.5B, pressured by higher cash taxes from the WBD termination fee. The stock fell 9% after-hours as Q3 revenue growth guidance of ~12% disappointed. Management tightened the full-year revenue range to $51B-$51.4B, signaling slower growth. Content spending is set to rise 10% this year, above the 5-year average but below the 10-year. Engagement metrics showed 97B+ viewing hours in H1 and June churn of 2.11%. The company is testing free trials, live channels, and bundling to boost engagement. This follows the preliminary Q2 revenue miss reported two days ago and the forecast cut yesterday, adding granularity and confirming the negative trend.
At the time of this announcement, NFLX was trading at $67.62 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $313.1B. The 52-week trading range was $70.86 to $127.75. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Wiseek News.