From The Motley Fool · Joe Tenebruso · · 40s
Netflix Stock Drops After Sales Forecast Cut
Netflix shares fell over 5% as the company lowered its advertising revenue forecast.
In brief
Netflix shares fell over 5% as the company lowered its advertising revenue forecast. Netflix cut its full-year ad revenue forecast to $2.7 billion from $3 billion, causing a 5% stock drop. Originally reported by The Motley Fool.
Netflix Stock Drops
Netflix shares fell more than 5% on Wednesday after the streaming leader cut its sales forecast for advertising revenue.
Sales Forecast Reduced
Management now expects full-year ad revenue of roughly $2.7 billion, down from a prior forecast of $3 billion.
Investor Reaction
Investors appeared to focus more on Netflix's guidance, causing a 5% stock drop despite the company's profitability improvements.
What to remember
Netflix cut its full-year ad revenue forecast to $2.7 billion from $3 billion, causing a 5% stock drop.
