Episode summary

Instant Reaction: Netflix Disappoints Again with Slow Growth | Bloomberg Daybreak: US Edition

Bloomberg Daybreak: US Edition · · 23 min · Hosts: Tim Stenovec, Carol Massar, Ed Ludlow · Guests: Felix Gillette, Eric Clark, Geetha Ranganathan

Instant Reaction: Netflix Disappoints Again with Slow Growth | Bloomberg Daybreak: US Edition – Bloomberg Daybreak: US Edition

Summary

Netflix shares fell sharply after the company projected second-quarter growth that was again slower than investors wanted, with revenue guidance of $12.9 billion and earnings of 82 cents a share coming in a bit light. The discussion centered on whether the market is reacting to a temporary soft patch or to a more serious slowdown in the streaming giant’s momentum after a year of weak stock performance and a failed bid for Warner Bros. Discovery.

One view was that the selloff is overdone because Netflix remains a dominant, cash-generative business with a large buyback, rising ad revenue, and pricing power. That camp argued the stock looks cheap at around 21 times earnings and that summer viewing and a tougher comparison to 2025 hits like Stranger Things and Squid Game are weighing on engagement.

The more cautious view was that Netflix has lost some of its old growth narrative. The panel argued that management’s newer levers — advertising, live sports, video podcasts, short-form video, and even free trials in some markets — suggest the company is trying to reignite engagement and improve monetization. Some said the shift in disclosure, especially moving its “what we watch” report to yearly, signals sensitivity about slowing viewership and a model that may need reshaping.

Key takeaways

  • Netflix projected revenue of $12.9 billion and earnings of 82 cents a share, both slightly below expectations, and the stock fell as much as 9% after hours.
  • One investor argued Netflix at roughly 21 times earnings looks attractive because of big free cash flow, pricing power, and a $4.7 billion buyback.
  • Another analyst said Netflix’s weaker engagement reflects a post-2025 hangover after major hits like Stranger Things, Squid Game and K-pop Demon Hunters.
  • The panel said Netflix is leaning harder on ads, sports, podcasts and short-form video to broaden the platform and rebuild growth.
  • Several speakers said YouTube remains the biggest competitive threat because it keeps growing faster than Netflix in audience engagement.

Notable quotes

“The company projected revenue of 12.9 billion and earnings of 82 cents a share”

— A speaker on Bloomberg Daybreak: US Edition at 3:02

“We still believe in the story. We still believe in the growth opportunities”

— A speaker on Bloomberg Daybreak: US Edition at 4:33

“I think that shows a little bit of lack of confidence”

— A speaker on Bloomberg Daybreak: US Edition at 10:46

“Netflix is trying to convince the market that there is like this second act beyond us being focused on subscriber growth”

— A speaker on Bloomberg Daybreak: US Edition at 23:09

How the episode opens

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From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →

Topics

  • netflix earnings
  • streaming growth slowdown
  • analyst expectations
  • after-hours stock drop
  • media and entertainment m&a

Companies and tickers mentioned

  • NFLX
  • Netflix
  • Warner Bros. Discovery
  • Accuvest Global Advisors

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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.

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