Netflix stock slides after weak outlook, revenue growth slows

Bullish Gator

Netflix shares drop following earnings as company issues weak outlook and slowing revenue growth, per CNBC.

Editorial companion

What stands out

CNBC's MacKenzie Sigalos noted Netflix shares dropped after an earnings update that included a weaker outlook and signs of slowing revenue growth, and the market reacted the next day. The company still posts healthy profitability, average net income up 35.9% year-over-year while revenue has averaged 12.7%, so this is less a collapse and more a re-pricing of future growth. Investors are deciding how much slower top-line expansion should dent a business that is still widening profits.