Netflix shares plunge to two-year low

Netflix Inc. stock fell to its lowest point in more than two years after the streaming giant posted its Q three twenty twenty-six results yesterday.

Revenue target hit, but ad business worries investors

Netflix posted quarterly revenue of twelve point eight seven billion dollars, hitting Wall Street's projected target. But guidance on its ad business dampened investor optimism significantly.

Strong quarter numbers masked by guidance

Revenue grew eleven point eight percent year over year. Diluted earnings per share reached eighty seven cents, exceeding expectations by five cents per share.

Fourth quarter forecast falls short

Netflix projected fourth quarter revenue of thirteen point four four billion dollars, representing eleven point five percent growth. Wall Street expected thirteen point five one billion dollars.

Ad business rollout slower than expected

Co-CEO Greg Peters blamed slower than expected rollout for some products as the reason for lowered advertising revenue guidance for twenty twenty-six.

“slower-than-expected rollout for some products”

Stock sinks in premarket trading

The gap between Netflix's fourth quarter forecast and Wall Street expectations caused the stock to drop significantly in premarket trading on October twenty-first.