Netflix shares slide 4% as slowing sales growth raises fresh concerns

Netflix shares dropped after the streaming giant posted its slowest sales growth in three years and signalled another quarter of slowing expansion, adding to concerns about the company’s growth trajectory, according to Bloomberg report.

Shares fell 4.8% in early New York trading on Wednesday. Netflix shares are down 30% this year, while the S&P 500 has gained 13%, highlighting the stock’s sharp underperformance against the broader market.

Netflix reported third-quarter revenue of $12.9 billion, broadly matching Wall Street expectations. However, its forecast of $13.4 billion in fourth quarter sales came in below analysts’ estimates, pointing to continued pressure on growth.


Revenue growth, which stood at 17.6% in the final quarter of last year, is now expected to slow to 11.5% in the fourth quarter. Netflix said its advertising business was behind part of the shortfall and is on track to generate $300 million less than previously expected.