Netflix shares fall 7% after warning on slower revenue growth
In short
Netflix shares fell 7% after the company said revenue growth may slow further. The report also said Netflix expects a 26% operating margin in the fourth quarter, and that job-cut costs will affect results.
The move matters because investors are reacting to weaker growth and extra costs. Netflix still has more than 325 million subscribers, but the report did not say how much growth may slow.
What the reporting says
Netflix shares fell 7% in extended trading after the company warned of further slowdown in revenue growth. A publisher-supplied summary said Netflix expects a 26% operating margin in the fourth quarter, with costs tied to job cuts affecting results. The company also said it has more than 325 million subscribers, but the immediate market reaction was negative and the precise scale of the slowdown was not stated.
Why it matters
Netflix shares fell after a market update tied to slower revenue growth and fourth-quarter margin guidance of 26%. The publisher-supplied summary says job-cut costs will weigh on results and that Netflix still has more than 325 million subscribers. The report does not state how much revenue growth may slow or how large the job cuts are, but investors appeared to focus on margin pressure and growth concerns.