NFLX

Netflix (NASDAQ:NFLX), a global subscription streaming entertainment and ad-supported video platform, closed at $67.05, up 3.09%, on Oct. 22. Shares rose as investors capitalized on a sharp post-earnings sell-off. Netflix stock fell the day prior, closing at $65.04, due to a softer-than-expected fourth-quarter outlook and a reduced 2026 full-year advertising revenue target of approximately $2.7 billion, down from $3 billion. Trading volume reached 58.4 million shares, coming in 65% above its three-month average of 35.4 million shares. Netflix IPO'd in 2002 and has grown nearly 56,000% since going public. The S&P 500 (SNPINDEX:^GSPC) closed at 7,663, down 1.22%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,009, down 2.60%. Among internet entertainment and streaming media peers, Walt Disney (NYSE:DIS) closed at $113.13, up 1.16%, and Comcast (NASDAQ:CMCSA) closed at $22.84, up 3.44%, highlighting mixed trading across the group. On Oct. 22, investors stepped in to buy the dip on Netflix stock after shares plunged to some of their lowest levels of the year. Investor confidence was supported by management's aggressive capital return program. In the third quarter, Netflix made its largest stock repurchase in company history, buying back 63.9 million shares for $4.8 billion. The streaming giant also reported stronger-than-expected Q3 diluted EPS and operating margins on Oct. 20. While this is encouraging, investors are cautiously awaiting January guidance after the disappointing Q4 outlook, which is still shaping investor focus on growth durability. Last week, Netflix cut roughly 6% of jobs in its biggest layoff since 2022, signaling tighter cost control as the company leans on ads, live events, and gaming to expand revenue. In a sign the industry is shifting away from the earlier streaming wars, which focused on content exclusivity to gain subscribers, Netflix marked a new era with its historic licensing deal with Disney earlier this month. Disney will put some of its content on Netflix in the hopes of attracting consumers to its service, underscoring how catalog depth and distribution deals remain important in streaming competition. Before you buy stock in Netflix, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $350,756!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,363,905!* Now, it's worth noting Stock Advisor's total average return is 922% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 22, 2026. Robert Izquierdo has positions in Comcast, Netflix, and Walt Disney. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy. Stock Market Today, Oct. 22: Netflix Rises as Investors Capitalize on Post-Earnings Sell-Off was originally published by The Motley Fool

Shares of Netflix NFLX dropped 5.3% yesterday despite the streaming giant reporting better-than-expected third-quarter 2026 earnings on Oct. 20, 2026. The dismal share price performance was primarily led by the company's narrowed 2026 revenue guidance, which also fell short of Wall Street estimates.  With investors concerned that intensifying competition in content creation could weigh on Netflix's growth prospects, a fact acknowledged by its management as well, some may prefer to avoid direct exposure to the stock. These concerns are compounded by NFLX's reduced full-year revenue outlook for its ad business, which has been a key driver of top-line growth. Against this backdrop, investors who remain confident in Netflix's long-term trajectory might prefer exchange-traded funds (ETFs) over direct stock ownership. ETFs with heavy exposure to NFLX offer a balanced way to capture the company's growth potential while hedging against the single-stock volatility that often accompanies quarterly earnings. Before diving into the specific ETFs, let us dig deeper into NFLX's overall third-quarter performance. Netflix's third-quarter 2026 earnings beat the Zacks Consensus Estimate by 6.1%. Its revenues came in line with the consensus mark. The company reported double-digit year-over-year revenue growth, driven by higher subscription revenues stemming from membership gains and pricing increases, growth in advertising revenues and favorable foreign currency movements. Geographically, the company witnessed solid growth in APAC, Latin America and EMEA regions, with a particularly strong slate observed in India, where its view hours rose 24% on an absolute basis, in the third quarter.  To expand the variety of its entertainment offering, Netflix is bringing more third-party content to its service in new ways and also broadening licensing. For example, NFLX partnered with Take-Two to unveil a sneak peek of the highly anticipated Grand Theft Auto VI in August.  The company has a licensing deal with Disney that brings a variety of current and library series and films for its members, including all five Ice Age films. As far as its shareholder-friendly moves are concerned, Netflix bought back 63.9 million shares for $4.8 billion, which marked the company's largest quarter ever of stock repurchases. NFLX currently has $22.3 billion remaining under its existing share repurchase authorizations. Looking ahead, Netflix now projects advertising revenues of approximately $2.7 billion, down from its previous forecast of nearly $3 billion, reflecting a slightly slower-than-anticipated rollout of certain advertising product capabilities.  Consequently, NFLX's full-year revenue guidance is now 0.2% below the mid-point of its prior forecasted range. Netflix also expects workforce reductions to weigh on its fourth-quarter 2026 results, with associated costs projected to reduce operating margin by approximately 120 basis points (bps). MicroSectors FANG+ ETN FNGS    This fund, with a market cap worth $603.9 million, provides exposure to 10 highly-traded growth stocks of next-generation technology and tech-enabled companies. Netflix accounts for roughly 9% of the fund's shares. FNGS charges 58 bps in fees.  First Trust Dow Jones Internet ETF FDN This fund, with net assets worth $5.2 billion, provides exposure to 41 U.S. stocks in the Internet industry. Netflix accounts for 5.69% of the fund's shares. FDN charges 49 bps in fees.  Global X PureCap MSCI Communication Services ETF GXPC This fund, with net assets worth $132.8 million, provides exposure to 24 companies from the communication services sector. Netflix accounts for 4.23% of the fund's shares. GXPC charges 25 bps in fees.  Vanguard Communication Services Index Fund ETF Shares VOX This fund, with net assets worth $6 billion, provides exposure to 111 companies that provide communications services primarily through fixed-line, cellular, wireless, high-bandwidth, and/or fiber-optic cable networks. Netflix accounts for 3.77% of the fund's shares. VOX charges 9 bps in fees.  Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report First Trust Dow Jones Internet ETF (FDN): ETF Research Reports Vanguard Communication Services Index Fund ETF Shares (VOX): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports Global X PureCap MSCI Communication Services ETF (GXPC): ETF Research Reports This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Netflix just reminded investors why expectations matter more than slogans. The streaming giant came into Q3 2026 with a reputation for relentless profit expansion and a trailing P/E around 18x that looked restrained against peers. Then the fresh report hit, the stock fell about 5% on the day, and the story turned to whether recent margin strength is already fully priced in. The headline is simple. Netflix delivered roughly US$12.9b in Q3 revenue and basic earnings per share of about US$0.89, while trailing 12 month net income sits near US$14.8b. The immediate price drop now clashes with a business still throwing off sizeable profits. Love Netflix's profit engine but concerned that a mid teens P/E already bakes in a lot of that strength? If so, consider exploring the 33 high quality undervalued stocks for stocks that combine healthy earnings with valuations that may offer more breathing room. - Revenue (Q3 2026 vs Q3 2025): US$12,874.2m vs. US$11,510.3m (up about 11.8%) - Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): US$3,663.9m vs. US$2,546.9m (up about 43.9%) - Basic EPS (Q3 2026 vs Q3 2025): US$0.89 vs. US$0.60 (up about 47.7%) - Trailing 12 Month Net Profit Margin (Q3 2026 vs prior year): 29.7% vs. 24.0% (higher margin on recent earnings) Earnings tell you what Netflix just reported, but cash flow tells you what the core engine is actually throwing off quarter after quarter, and that is what valuation focused investors usually care about most. On Netflix's cash flows alone, it is possible the current price paints a different picture of the business and that the stock could be a solid 22% undervalued. Bulls argue Netflix can turn new products into a second wave of expansion that sits on top of the subscription base. "The main thing that has to go right is that newer growth engines like the ad tier, live events, and cloud gaming continue to draw viewers and advertisers in enough volume to support the guided 12% to 14% revenue growth and 31.5% operating margin for 2026." Q3 tells a mixed story. Ads grew more than 80% year on year and live sports deals like the NFL package and FIFA rights are in place, so the engines exist. Yet management cut 2026 ad expectations to about US$2.7b, and Q4 guidance sits below the Street. This shows these growth levers are not fully offsetting softer engagement or slower top line momentum yet. Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there. The key worry is that Netflix spreads itself across too many formats without getting paid for the extra usage. "Netflix is broadening into games, kids apps, and podcasts with very large growth in activity metrics; however, an 8% drop in average daily viewing hours per subscriber and a multi year low U.S. TV share indicate that engagement may be fragmenting across formats, creating a risk that incremental usage does not translate into proportional subscription or ad revenue and could dilute overall earnings growth." Q3 commentary about "healthy" engagement and better churn clashes with this concern because Netflix did not report a clean rebound in viewing hours. Ad revenue growing more than 80% still lags internal targets, and guidance cutting 2026 ad expectations to about US$2.7b instead of US$3b shows monetization falling short of the ambition for these new formats. Slower revenue growth and Q4 guidance below the Street underline that broader activity has yet to restore top line momentum to earlier phases. Netflix shows that strong results and a sharp price reaction can move in conflicting directions. The real opportunity could sit in stocks that appear undervalued before expectations and sentiment adjust. - Company 1 - 22% below our estimate - connects cloud infrastructure, workplace software and AI tools into one recurring revenue stack. - Company 2 - 40% below our estimate - expands from solar trackers into storage and inverters so projects capture more value. - Company 3 - 34% below our estimate - tightens control of offshore support vessels so long term energy projects compete for capacity. Those are three of them. See every one of the 33 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NFLX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Netflix NFLX delivered third-quarter 2026 revenues in line with its forecast and profitability ahead of it. However, it trimmed its 2026 revenue outlook and advertising revenue expectations. Management acknowledged investor concerns about the growth in view hours and said it aims to accelerate that growth. A The company reported third-quarter 2026 earnings per share of 87 cents, which increased 49% from 59 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate by 6.1%. Quarterly revenues increased 11.8% year over year (11% on an F/X-neutral basis) to $12.87 billion, in line with the company's forecast. Subscription revenues were the main driver of revenue growth, reflecting higher memberships and pricing. Growth in advertising revenues and a favorable foreign-exchange impact, net of hedging, also contributed. Membership growth benefited from healthy retention in every region. Churn improved year over year, both globally and in the United States, and came in better than forecast. Netflix continues to withhold quarterly membership numbers. Revenue growth was strongest in Latin America, which rose 17% year over year (12% F/X-neutral) to $1.60 billion. Asia-Pacific followed at $1.54 billion, up 12% (15% F/X-neutral). The United States and Canada grew 11% to $5.63 billion, and EMEA grew 11% (9% F/X-neutral) to $4.11 billion. India was a standout. View hours there grew 24% year over year, helped by the reality series Lock Upp, which drove the most viewing of any title in India ever. Netflix's first transaction-based loyalty bundle with Flipkart produced its largest quarter ever of paid net additions in India. Revenues in India grew about 18% on an F/X-neutral basis. Member response to the 2026 price changes was consistent with prior adjustments and internal expectations. However, Netflix now expects 2026 advertising revenues of about $2.7 billion, down from the roughly $3 billion it projected earlier. It attributed the cut to a slightly slower-than-expected rollout of some ad product capabilities. Netflix, Inc. price-consensus-eps-surprise-chart | Netflix, Inc. Quote Operating income rose 37.3% year over year to $4.46 billion. Operating margin expanded to 34.6% from 28.2% in the year-earlier quarter. That was ahead of the company's 33.2% forecast, mainly because of the timing of expenses and slightly higher-than-expected revenues. Content amortization grew 5.8% to $4.24 billion, consistent with the deceleration management had flagged for the second half. Cost of revenues declined 1.4% to $6.08 billion. Technology and development expenses rose 21% to $1.03 billion. Net income for the quarter was $3.66 billion, up from $2.55 billion a year ago. Net cash provided by operating activities was $3.16 billion in the quarter, up from $2.83 billion a year earlier. Free cash flow increased to $2.88 billion from $2.66 billion in the prior-year quarter. Netflix lowered its 2026 free cash flow forecast to about $12 billion from $12.5 billion. The main reason is a real estate transaction it expects to close in the fourth quarter. The company still expects a cash content spend-to-amortization ratio of roughly 1.1x. Netflix ended the quarter with $8.2 billion in cash and cash equivalents and $15.3 billion in gross debt. Non-GAAP net debt was $7.1 billion. Gross debt rose about $1 billion from the second quarter because Netflix completed a $1 billion bond deal to fund a $1 billion debt maturity due in the fourth quarter. The company repurchased 63.9 million shares for $4.8 billion in the quarter, its largest quarterly buyback on record. It has $22.3 billion remaining under its authorizations. Netflix now expects full-year 2026 revenues of $51.1 billion, implying 13% growth (12% F/X-neutral). That is 0.2% below the midpoint of its prior range of $51-$51.4 billion. Subscription revenue growth beat expectations, but the lower advertising forecast more than offset it. The company maintained its 2026 operating margin target of 31.5% compared with 29.5% in 2025. The target now absorbs a negative impact of about 30 basis points from the fourth-quarter headcount reductions. The forecast implies operating income growth of more than 20% for 2026. For the fourth quarter of 2026, Netflix expects revenues of $13.44 billion, up 11.5% year over year (11% F/X-neutral), driven by growth in memberships, pricing and advertising revenues. It projects an operating margin of 26% compared with 24.5% in the year-ago quarter, which includes a negative impact of about 120 basis points from the recently announced headcount reductions. Earnings per share are expected to be 67 cents, up from 56 cents in the fourth quarter of 2025. Netflix plans its biggest quarterly live slate yet in the fourth quarter. It includes the NFL's first Thanksgiving Eve game, a Christmas Day doubleheader and the Tyson Fury vs. Anthony Joshua fight. Netflix announced headcount reductions, which it said will let it keep investing aggressively in high-impact areas. Management will give 2027 guidance in January. The ad-supported tier will launch in 15 new countries in 2027. The first tranche, in March 2027, covers nine EMEA countries, Colombia, Peru and newly added New Zealand. Netflix expanded its Netflix Ads Suite with globally available CTV marketplace deals for programmatic buying. It also signed new partnerships with MercadoLibre in Latin America and AdForm in EMEA. The TF1 partnership in France, launched this summer, is generating incremental viewing. Netflix also signed a licensing deal with Disney that includes all five Ice Age films, and partnered with Take-Two on a sneak peek of Grand Theft Auto VI in August. Currently, Netflix carries a Zacks Rank #4 (Sell). Fox FOXA, MARRIOTT VAC WW VAC and Versant Media Group, Inc. VSNT are some better-ranked stocks that investors can consider in the broader Consumer Discretionary sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Fox is set to report its quarterly results on Nov. 2, while MARRIOTT VAC WW and Versant Media Group are slated to report their respective quarterly results on Nov. 3. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Marriott Vacations Worldwide Corporation (VAC) : Free Stock Analysis Report Fox Corporation (FOXA) : Free Stock Analysis Report Versant Media Group, Inc. (VSNT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Netflix Inc (NASDAQ:NFLX, XETRA:NFC) gave investors a reason to look beyond a disappointing fourth-quarter forecast, with strong earnings growth, expanding margins and a reaffirmed 2026 profitability target keeping analysts firmly in its corner. Revenue rose 12% year over year to US$12.874 billion in the third quarter, matching consensus estimates of US$12.875 billion. Earnings per share jumped 49% to US$0.87, beating both company guidance and analyst expectations of US$0.82. Gross margin reached 52.8% as content amortization increased just 6%. Netflix also repurchased a record US$4.8 billion of its own shares during the quarter. However, fourth-quarter guidance fell short of expectations. Netflix forecast revenue of US$13.442 billion, below consensus of US$13.515 billion, with an operating margin of 26% and earnings per share of US$0.67. Wedbush noted that the margin outlook includes about 120 basis points of costs associated with layoffs affecting roughly 1,000 employees. Netflix also lowered its 2026 advertising revenue outlook to about US$2.7 billion from approximately US$3 billion, citing delays to product rollouts and partner integrations. Free cash flow guidance fell to about US$12 billion from US$12.5 billion, reflecting a studio lot purchase expected to close in the fourth quarter. Despite the near-term setbacks, Wedbush said Netflix "isn't beholden to industry headwinds," pointing to stable churn and pricing, resilient advertising demand and a growing inventory of live events. The brokerage also highlighted Netflix's evolution towards a broader platform model through expanded licensing partnerships and add-on deals. It maintained its Outperform rating but lowered its price target to US$80 from US$90. UBS also reiterated its Buy rating, arguing that Netflix's strategy and financial objectives remain intact, including its ambition to deliver sustained double-digit revenue growth. Churn declined in the US and Canada as well as globally, while the appointment of a new Chief Content Officer is expected to strengthen content execution. India was another bright spot, with viewing hours increasing 24% and paid net additions reaching a record. UBS forecasts revenue growth of 13% and operating income growth of 21% in 2026, followed by growth of 11% and 19%, respectively, in 2027. Those estimates are down from its previous forecasts of 12% revenue growth and 23% operating income growth for 2027. The analysts pointed to Netflix's scale, durable competitive advantage and substantial potential to generate more revenue from its existing audience as reasons to remain positive despite the weaker near-term outlook.

Netflix (NFLX) stock fell 5% in after-hours trading on Tuesday as the streaming giant's Q4 revenue outlook came in below Wall Street estimates, signaling slower growth. The company posted revenue of $12.87 billion in its fiscal third quarter, in line with analyst estimates. Earnings per share came in at $0.87, topping estimates of $0.82. Fourth-quarter outlook for the company's top line, though, came in at $13.44 billion, short of the consensus analyst estimate of $13.51 billion. Netflix also cut its 2026 ad revenue guidance from $3 billion to $2.7 billion due to a slower-than-expected rollout of certain ad product capabilities. Wall Street has been laser-focused on engagement, which management argued was healthy given the response to this year's price increases. When it comes to the US, "our engagement is solid, and it will allow us to continue to grow as we have for the last several years," Greg Peters, co-CEO of Netflix, said during the earnings call. "But we know that we can do better…It's our goal to go from very good to great," he added. Wall Street analysts were looking for signs on whether slowing engagement would bleed into the revenue growth numbers. "That is exactly what we are seeing with the 4Q growth outlook," Geetha Ranganathan, senior media analyst at Bloomberg Intelligence, told Yahoo Finance after the results were released. "This kind of speaks to a slowing growth algorithm, which kind of spells trouble for the company without a doubt," she added. The results follow the streaming giant's job-cutting plan and a leadership shake-up announced last week amid slowing viewer engagement. Last week, former Disney executive Peter Rice was named Netflix's next chief content officer. Rice replaces Bela Bajaria, who worked at the streamer for nearly a decade and served as CCO since 2023. Also last week, Netflix said it would cut 6% of its workforce, or about 1,000 employees, marking the company's largest reduction of employees since 2022. The move comes as the company seeks to reinvigorate viewership growth and strengthen its content amid growing competition and short-form viewing habits. Audiences have increasingly moved away from traditional television sets toward mobile devices, noted Piper Sandler director and senior research analyst Tom Champion in a recent interview. "Where a lot of the [video] growth has come from has been short form, has been content especially built for mobile," Champion told Yahoo Finance. "That's given rise to TikTok and Instagram Reels, and increasingly, YouTube seems like the superpower in terms of video content." Earlier this year, Paramount outbid Netflix for Warner Bros. Discovery and won shareholder approval for its revised $111 billion deal, including debt, in April. The streamer's stock has declined roughly 48% from its June 2025 record high as user engagement has stalled. Shares are down roughly 25% year to date. Ines Ferre is a senior business reporter for Yahoo Finance. Click here for the latest technology news that will impact the stock market Read the latest financial and business news from Yahoo Finance Correction: A previous version of this article misstated the first name of Netflix co-CEO Greg Peters. We regret the error.

- Elon Musk's space company reported its first quarterly profit since going public in June, driven mainly by growth in its superintelligence segment. - Netflix stock tanked nearly 6% in overnight trading after its forecast disappointed markets; 3M stock closed nearly 6% up after beating Wall Street estimates and raising its full-year outlook. - Markets will now turn to earnings from Meta, Tesla, IBM and AT&T, slated to report results on Wednesday. U.S. stock futures were mixed in the overnight session late Tuesday as markets await a slew of technology company earnings this week and SpaceX posted stellar third-quarter (Q3) results. As of 10:56 p.m. EDT, Nasdaq-100 futures climbed more than 1%, and S&P 500 futures gained 0.35%. Dow futures, however, slipped about 0.01%. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox On Tuesday, the three benchmark indexes closed mixed. The Nasdaq Composite closed 0.02% lower, but the Dow Jones Industrial Average added more than 500 points, closing up more than 1%. The S&P 500 climbed 0.28% at close. Index | Move | Close Dow Jones Industrial Average | 1.02% | 52,495.88 S&P 500 | 0.28% | 7,712.57 Nasdaq Composite | -0.02% | 26,424.82 Earnings from marquee names, including SpaceX (SPCX) and Netflix Inc. (NFLX) dominated the narrative on Tuesday. Elon Musk's space company reported its first quarterly profit since going public in June, driven primarily by growth in its superintelligence segment. SpaceX reported Q3 revenue of $14.58 billion, surging past estimates of $13 billion, and earnings per share of $0.35 against an expected $0.13. AI-related revenue came in at $7.56 billion, surpassing Starlink's print for the first time, partly due to the company's August acquisition of Cursor and additions to cloud service deals. Musk hinted that $1 trillion in revenue in 2028 could be on the cards, even as he downplayed a potential combination of SpaceX and Tesla (TSLA), despite creating special committees of independent directors to explore the possibility. Deepwater Asset Management's Gene Munster put the odds of a merger within two years at 95%, saying in a post on X, "The stars are lining up for Elon to fully realize his vision of $SPCX being a vertical AI company, with the odds of a $TSLA merger increasing." Energy stocks, including Bloom Energy (BE), Oklo (OKLO) and NuScale Power (SMR), among others, climbed in the overnight session after Musk said that power and cooling infrastructure were the actual constraints on growing "superintelligence" rather than semiconductors, boosting sentiment for the stocks amid the AI boom. Meanwhile, Netflix and 3M Co. (MMM) also posted quarterly prints on Tuesday. NFLX stock tanked nearly 5% overnight after its forecast disappointed markets, while MMM stock closed nearly 6% up after beating Wall Street estimates and raising its full-year outlook. Markets will now turn to earnings from Meta Platforms Inc. (META), Tesla Inc. (TSLA), International Business Machines Corp. (IBM), and AT&T, Inc. (T), which are slated to report on Wednesday. Christian Mueller-Glissmann, head of asset allocation at Goldman Sachs Research, reportedly said in a note that this earnings season could help stocks rise as the year winds down. "Near term there might be more volatility due to [AI] concerns, Middle East tensions and midterm elections, but we think earnings support with lighter positioning and lower valuations should help equities into year-end," he wrote, according to a CNBC report. Meanwhile, tensions between the U.S. and Iran remained high. U.S. Defense Secretary Pete Hegseth said the country was prepared to take more military action against Iran if President Donald Trump ordered it. U.S. Secretary of State Marco Rubio told the media that a peace deal with Iran seemed extremely difficult and that the U.S. would continue to exert economic pressure until Tehran stopped attacks on commercial ships in the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi said that the critical waterway would remain closed until the U.S. accepts Tehran's conditions, even as indirect talks between the two countries continue through Pakistan and Qatar. Oil prices soared amid the ongoing tensions. Brent crude futures were trading at $110.24 a barrel, up more than 1%, while WTI crude futures traded at $99.05 per barrel. SpaceX (SPCX): The rocket company's shares were on retail radar after its Q3 results beat Wall Street expectations. Super Micro Computer Inc. (SMCI): The technology stock rallied about 17% in overnight trading late Tuesday after it reported preliminary financial figures for the quarter ending Sept. 30 that were significantly higher than Wall Street expectations. Netflix Inc. (NFLX): The streaming giant drew retail attention after posting a bottom-line beat on its Q3 results, but a soft outlook weighed on investor sentiment. GE Aerospace (GE): The company was on the retail radar after beating third-quarter estimates and raising its 2026 outlook. Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ) climbed overnight, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) was flat. Meanwhile, U.S. long-dated Treasury yields continued above 5%. At the time of writing, the 10-year U.S. Treasury yield was 5.127%, and the 30-year Treasury yield was 5.439%. The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.34% amid 'neutral' sentiment. Asian markets opened mixed on Wednesday, with South Korea's KOSPI and Japan's Nikkei 225 trading in the green territory at the time of writing, while China's SSE Composite and Australian stocks traded lower. For updates and corrections, email newsroom[at]stocktwits[dot]com. Aashika Suresh has no position in any of the stocks mentioned in this article. StockTwits' news team content is for informational purposes only and is not intended as investment advice. For more, see our editorial policy. This article was originally published on StockTwits. Related: - CAPR Stock on Track For Worst Month Since July AdCom Vote On Deramiocel As November FDA Decision Nears - SKYD Surges After Media Baron John Malone Predicts $8–10B SpaceX Investment - Meta Reportedly Hit With $25B Penalty in New Mexico Over Cambridge Analytica Deception

Netflix (NASDAQ:NFLX) shares fell more than 5% in pre-market trading after the streaming company issued fourth-quarter revenue guidance below Wall Street expectations, despite reporting third-quarter earnings above analysts' forecasts. The company also reduced its annual advertising revenue outlook, citing delays in the introduction of certain advertising products. The share price decline followed a period of underperformance relative to the broader US stock market. Netflix shares had fallen more than 26% since the beginning of 2026, compared with a 12.7% increase in the S&P 500. Since its previous quarterly earnings announcement in July, the stock had declined approximately 0.4%. Netflix reported third-quarter earnings per share of $0.87, exceeding the analyst consensus estimate of $0.82. Quarterly revenue reached $12.87 billion, matching Wall Street expectations. Although the company exceeded earnings forecasts, its outlook for the final quarter of the year fell short of market estimates. For the fourth quarter, Netflix projected revenue of $13.4 billion, compared with analysts' expectations of $13.51 billion. The company also forecast full-year 2026 revenue of $51.1 billion, within its previous guidance range of $51 billion to $51.4 billion. The updated figures indicated that Netflix expected annual revenue to remain within its established forecast range, although fourth-quarter sales were projected to be lower than analysts had anticipated. Netflix reduced its expected advertising revenue for 2026 to approximately $2.7 billion, compared with its previous projection of around $3 billion. The company attributed the revision to a slower-than-anticipated introduction of certain advertising product capabilities. In its shareholder letter, Netflix said: "While subscription revenue growth has outperformed our expectations, we currently expect 2026 ad revenue of ~$2.7 billion [versus] approximately $3 billion previously (due to slightly slower than expected rollout of some ad product capabilities)." The revised outlook represents a reduction of approximately $300 million from the company's earlier advertising revenue forecast. The announcement highlighted differing trends between Netflix's subscription business, which performed above internal expectations, and its advertising operations, where product development delays affected projected revenue. Netflix has been investing in additional programming and content formats as it seeks to maintain and increase the amount of time subscribers spend using its platform. The company has expanded beyond traditional on-demand films and television programmes to include live entertainment, sporting events, video podcasts and content produced by YouTube creators. It has also pursued subscription bundling arrangements with other streaming services and secured broadcasting rights for the 2030 FIFA World Cup. These initiatives form part of Netflix's efforts to broaden its entertainment offering and attract viewers across different content categories. However, external indicators of audience engagement have presented a mixed picture. Goldman Sachs recently noted that third-party data covering Netflix's engagement trends during the summer and early autumn had been "quite mixed". Citing figures from Sensor Tower, the investment bank highlighted a 10% year-on-year decline in monthly active users in the United States during the third quarter, compared with a 1% decrease across the rest of the world. These figures represent third-party estimates rather than Netflix's own reported subscriber data. Netflix has progressively reduced the frequency of certain disclosures relating to subscriber numbers and viewing activity. The company stopped publishing quarterly subscriber figures in 2025. In July 2026, Netflix announced that it would also reduce the frequency of its viewing-hours reports. Beginning in January 2027, the company plans to publish viewing-hours data annually rather than twice a year. The changes mean investors will have fewer regularly published company figures with which to assess audience growth and engagement. Third-party measurements may therefore remain relevant to analysts evaluating trends in Netflix's user activity, although methodologies can differ from the company's internal measurements. Netflix has experienced several senior management changes alongside a restructuring of its workforce. Chief Content Officer Bela Bajaria was replaced by Peter Rice, a media executive who previously held senior positions at Fox and Disney. The company also saw the departure of Dan Lin, who had led its film division for nearly three years. Both executive changes occurred within the same week. Separately, Netflix announced plans to eliminate approximately 1,000 positions, equivalent to around 6% of its global workforce. The reductions represent the company's largest round of layoffs since 2022. The management changes and workforce reductions come as Netflix continues investing in programming and adjusting its operations. Netflix has indicated that it intends to continue expanding its programming through licensing agreements and partnerships with external content providers. In its shareholder letter, the company said: "We'll continue to expand our entertainment offering through licensing and new ways to bring in more third-party content to our service, like our TF1 partnership in France. Our audience, which is approaching one billion people, and our best-in-class product capabilities, make us great partners for studios, networks and creative talent." The company cited its partnership with French broadcaster TF1 as an example of its approach to incorporating additional third-party programming. Netflix's strategy also includes live events, sports and other content formats intended to complement its existing film and television catalogue. Investors will be assessing whether Netflix can meet its fourth-quarter revenue forecast of $13.4 billion and its full-year target of $51.1 billion. Advertising revenue will remain an area of attention following the reduction in the company's 2026 forecast to approximately $2.7 billion. Audience engagement trends, programming expenditure and the impact of recent management and workforce changes will also be relevant to assessments of the company's performance. Although third-quarter earnings exceeded analysts' expectations, the lower-than-anticipated fourth-quarter revenue guidance and revised advertising outlook contributed to the negative initial market reaction. Netflix stock price