Episode summary
Instant Reaction: Netflix Disappoints Again with Slow Growth | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · 19 min · Hosts: Tim Stenovec, Carol Massar · Guests: Felix Gillette, Eric Clark, Geetha Ranganathan, Ed Ludlow
Summary
Netflix’s latest report deepened investor worries because the company again projected slowing sales growth and offered a softer outlook than expected. The host highlighted projected revenue of $12.9 billion and earnings of 82 cents a share, while noting the stock was swinging sharply lower after hours and remained down more than 20% year to date and more than 30% from a recent high.
The discussion centered on whether Netflix is still a pure growth story or something closer to a defensive staple. One guest argued the company still has a strong core business, big free cash flow, and a massive buyback, and said the market may be underestimating how stable Netflix looks at 21 times earnings. Another guest pushed back, saying streaming remains a hits business and that Netflix is dealing with a post-2025 hangover after big titles and a failed bid for Warner Bros. Discovery.
The panel also focused on what Netflix can do next: improve content quality, add live sports and entertainment, expand advertising, use AI to boost margins, and test new formats like podcasts and short-form video. The analysts agreed that YouTube is the bigger threat now, while Netflix’s shrinking transparency on viewership and weaker engagement numbers make the bearish case harder to ignore.
Key takeaways
- Netflix projected $12.9 billion in revenue and 82 cents in earnings, a bit below expectations, while signaling a second straight quarter of slowing sales growth.
- One guest argued Netflix still looks attractive at about 21 times earnings because of free cash flow, a huge buyback, and recurring price increases.
- An analyst said the company’s weaker engagement reflects a post-2025 hangover after big hits like Stranger Things and Squid Game and a failed Warner Bros. Discovery bid.
- The bearish case is that Netflix needs new growth levers—ads, sports, live entertainment, podcasts, and short-form video—to offset slowing momentum.
- YouTube, not other streamers, was described as the more serious competitive threat because it keeps growing engagement faster than Netflix.
Notable quotes
“we did see that as we mentioned uh second consecutive quarter of slowing sales. The company projected revenue of 12.9 billion and earnings of 82 cents a share”
“I I have nothing to bad to say other than you know quarter to quarter things are going to bounce around. We still believe in the story”
“Netflix hasn't had huge hits so far this year. I mean I think it's that simple”
“I think that shows a little bit of lack of confidence. Okay. You know, and uh, you know, scaling back what they share with all of us”
“I think this is what really really worries investors because if you have a glut of AI generated content on YouTube, where will those Netflix numbers land”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. This is a breaking news update from Bloomberg. Instant reaction and analysis from our 3,000 journalists and analysts around the world.
We are focused on Netflix. We're going to bring up the trade for you because we did see the stock bouncing around in the after hours. I remind you that it's down more than 20% year-to date.
Down more than 30% since hitting uh a recent high back on April 16th. That's when it reported earnings last time and there was disappointment about revenues and call it so two quarters in a row. Uh quick check on some of the numbers in terms of Netflix and we did see that as we mentioned uh second consecutive quarter of slowing sales.
The company projected revenue of 12.9 billion and earnings of 82 cents a share. So again, a second consecutive quarter slowing sales growth. And so investors have got to be having some questions about, you know, where does growth come from and what's the future for Netflix?
Although, let's point out, still the giant when it comes to streaming.
It it is still the giant. I want to bring in a great round table to kick off our coverage. We've got Felix Gillette with us, Bloomberg News media and entertainment editor.
He's here in the Bloomberg Interactive Broker studio. Also joining us, Eric Clark, the CIO of Acvest Global Advisors. He focuses on consumer stocks, including Netflix.
He also manages the Alpha Brands Consumption Leaders ETF. Um Eric, I want to start with you because in the uh Alpha Brands Consumption Leaders ETF, ticker LG, the uh fifth biggest holding after Nvidia Broadcom, Eli Liy and TSMC is Netflix. After a report like this, are you buying?
Are you selling? Are you holding?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- netflix growth outlook
- streaming competition
- investor anxiety
- revenue and earnings forecast
- after-hours stock move
Companies and tickers mentioned
- NFLX
- Netflix
- Warner Bros. Discovery
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
More from Bloomberg Businessweek Daily
-
Bloomberg Businessweek Weekend - November 13th, 2026 | Bloomberg Businessweek -
Inside Jensen Huang’s Final Hours as Nvidia CEO | Bloomberg Businessweek -
Jensen Huang's Exit Kicks Off Nvidia Strategy Reset | Bloomberg Businessweek -
Special Episode: Bobby Jain on Why He Chose Millennium Again | Bloomberg Businessweek -
Bloomberg Businessweek Daily Podcast: Jensen’s Nvidia Departure -
Take-Two Releasing Long-Awaited Grand Theft Auto VI Next Week | Bloomberg Businessweek
Bloomberg Businessweek Daily, this episode and its artwork belong to Bloomberg. Octagon is not affiliated with the show; this page is an independent summary.
