Episode summary

Instant Reaction: Netflix Disappoints Again with Slow Growth | Bloomberg Intelligence

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

Instant Reaction: Netflix Disappoints Again with Slow Growth | Bloomberg Intelligence – Bloomberg Intelligence

Summary

Netflix disappointed investors again with guidance for a second straight quarter of slowing sales growth, projecting revenue of $12.9 billion and earnings of 82 cents a share, both slightly below expectations. The stock fell sharply after hours as the market focused less on the just-reported quarter and more on what the company said about the next one and the strength of future engagement.

The discussion split between a more defensive valuation view and a more cautious fundamental view. One guest argued Netflix looks like a “utility” now: a stable subscription business with big free cash flow, a large remaining buyback authorization, and pricing power that has lifted average revenue over time. That guest said the recent selloff makes the shares look attractive on a relative basis.

Other speakers pushed back, saying the service still lives and dies by hits. They pointed to a 2025 hangover from major titles, softer engagement, and the company’s effort to expand beyond TV and movies into video podcasts, live programming, short-form video, and ads. The analyst said management does not yet have the same clear levers it used in 2022, making the bearish case harder to dismiss.

Key takeaways

  • The host said Netflix projected $12.9 billion of revenue and 82 cents a share, both a bit below Wall Street expectations.
  • One guest argued Netflix is now a “utility” with big free cash flow, pricing power, and a large buyback still available.
  • The analyst said investors wanted stronger operating margin guidance and saw the weaker outlook as feeding the bearish case.
  • A guest said Netflix’s 2025 run of huge hits created a “hangover,” making current engagement look weaker by comparison.
  • The analyst said Netflix’s attempts to push into podcasts, live content, and short-form video suggest the model needs new growth levers.

Notable quotes

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

— A speaker on Bloomberg Intelligence at 3:02

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

— A speaker on Bloomberg Intelligence at 4:33

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

— A speaker on Bloomberg Intelligence 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 Intelligence 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 revenue growth
  • streaming stock selloff
  • analyst expectations
  • after-hours trading
  • streaming competition

Companies and tickers mentioned

  • NFLX
  • Netflix
  • Warner Bros. Discovery Inc.

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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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