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Suddenly thunder! U.S. stock giants are plummeting! what happened?

2026-07-17·newswire-us-stock-110035
Suddenly thunder! U.S. stock giants are plummeting! what happened?

The U.S. stock market earnings season is “constantly thunderous.” Affected by the performance guidance that fell short of expectations, the stock price of the US streaming media giant Netflix plummeted in pre-market trading on the US stock market, once falling by more than 10%.

The company expects revenue in the third quarter of 2026 to be US$12.9 billion and earnings per share of 0.82 yuan, both lower than expected. Analysts from Wall Street institutions pointed out that investors currently generally believe that Netflix’s business is deteriorating. Goldman Sachs lowered its price target on Netflix to $94 from $110.

france It also lowered Netflix’s price target from $100 to $95. On the afternoon of July 17th, Beijing time, Netflix’s stock price plunged sharply in pre-market trading on the U.S. stock market. It once fell by more than 10%. As of 17:00, the decline reached 9.62%.

On the news, Netflix predicted in its latest financial report that revenue in the third quarter of 2026 will be US$12.9 billion, a year-on-year increase of 11.7%. This will be the lowest year-on-year growth in any quarter since the end of 2023; earnings per share are expected to be US$0.82.

According to London Stock Exchange Group (LSEG), analysts had forecast the company's third-quarter revenue of $13 billion and diluted earnings per share of $0.84. Netflix also narrowed its full-year revenue forecast range to $51 billion to $51.4 billion, compared with the previous forecast range of $50.7 billion to $51.7 billion.

This heightened investor concerns that the company's growth had peaked.

The financial report shows that Netflix achieved revenue of US$12.56 billion in the second quarter, a year-on-year increase of more than 13%, slightly lower than analysts’ expectations of US$12.58 billion; net profit was US$3.4 billion, a year-on-year increase of nearly 9%, basically in line with Wall Street analysts’ expectations.

Before the financial report was released, Netflix's stock price had fallen by more than 40% in the past year, indicating that investors were worried that the company had limited room to continue to expand its user base or increase revenue.

"We don't manage our business on a quarterly basis," Chief Financial Officer Spencer Neumann said on a call with analysts. He further pointed out that Netflix currently only covers about 45% of its serviceable market and accounts for only 5% of global TV viewing time, and said that the company will increase revenue by US$6 billion this year.

Netflix said in a letter to shareholders: "Overall, our user engagement remains healthy.

As with all our businesses, we are working hard to continuously improve." Netflix said it will reduce viewing time reporting from twice a year to once a year starting in January 2027 "to focus on our key financial metrics - revenue and operating profit." Netflix also highlighted the broader use of generative AI in its production pipeline.

The company said it aims to maintain a competitive advantage by using technology to improve all aspects of its business. The use of generative AI by producers is "expanding rapidly" and has been applied to about 300 films, mainly in the post-production stage.

Wall Street institutions collectively lower target prices Netflix's current expected price-to-earnings ratio has dropped to about 21 times, well below its historical average. The current valuation reflects a more pessimistic outlook from investors than its guidance.

Investors appear to view the lower-than-expected guidance as evidence that Netflix's more conservative valuation multiple is reasonable at this stage of its development.

PP Foresight analyst Paolo Pescatore said Netflix's third-quarter guidance "seems to reflect management's caution and the natural maturation of the company's growth model, rather than a sudden deterioration in the business." He added that the guidance "further reinforces the view that Netflix remains strong but is entering a more robust phase of growth,

with significantly less room for error given its consistently high expectations." Morningstar analysis said that investors currently generally believe that Netflix’s business is deteriorating.

Management's decision to withdraw the user engagement report only exacerbated that perception, which was a major contributor to a near double-digit drop in its stock price in after-hours trading. Goldman Sachs lowered its price target for Netflix to $94 per share from $110 per share, but maintained a "buy" rating on the streaming giant's stock.

Société Générale pointed out that it lowered Netflix’s target share price from US$100 per share to US$95 per share and maintained an “outperform” rating. Evercore ISI also lowered Netflix's target price from $115 per share to $100 per share; KeyBanc lowered Netflix's target price from $115 to $92.

#Stocks #AI #Gold #Earnings

Full text

Suddenly thunder! U.S. stock giants are plummeting! what happened?

The U.S. stock market earnings season is “constantly thunderous.” Affected by the performance guidance that fell short of expectations, the stock price of the US streaming media giant Netflix plummeted in pre-market trading on the US stock market, once falling by more than 10%. The company expects revenue in the third quarter of 2026 to be US$12.9 billion and earnings per share of 0.82 yuan, both lower than expected. Analysts from Wall Street institutions pointed out that investors currently generally believe that Netflix’s business is deteriorating. Goldman Sachs lowered its price target on Netflix to $94 from $110. france It also lowered Netflix’s price target from $100 to $95. On the afternoon of July 17th, Beijing time, Netflix’s stock price plunged sharply in pre-market trading on the U.S. stock market. It once fell by more than 10%. As of 17:00, the decline reached 9.62%. On the news, Netflix predicted in its latest financial report that revenue in the third quarter of 2026 will be US$12.9 billion, a year-on-year increase of 11.7%. This will be the lowest year-on-year growth in any quarter since the end of 2023; earnings per share are expected to be US$0.82. According to London Stock Exchange Group (LSEG), analysts had forecast the company's third-quarter revenue of $13 billion and diluted earnings per share of $0.84. Netflix also narrowed its full-year revenue forecast range to $51 billion to $51.4 billion, compared with the previous forecast range of $50.7 billion to $51.7 billion. This heightened investor concerns that the company's growth had peaked. The financial report shows that Netflix achieved revenue of US$12.56 billion in the second quarter, a year-on-year increase of more than 13%, slightly lower than analysts’ expectations of US$12.58 billion; net profit was US$3.4 billion, a year-on-year increase of nearly 9%, basically in line with Wall Street analysts’ expectations. Before the financial report was released, Netflix's stock price had fallen by more than 40% in the past year, indicating that investors were worried that the company had limited room to continue to expand its user base or increase revenue. "We don't manage our business on a quarterly basis," Chief Financial Officer Spencer Neumann said on a call with analysts. He further pointed out that Netflix currently only covers about 45% of its serviceable market and accounts for only 5% of global TV viewing time, and said that the company will increase revenue by US$6 billion this year. Netflix said in a letter to shareholders: "Overall, our user engagement remains healthy. As with all our businesses, we are working hard to continuously improve." Netflix said it will reduce viewing time reporting from twice a year to once a year starting in January 2027 "to focus on our key financial metrics - revenue and operating profit." Netflix also highlighted the broader use of generative AI in its production pipeline. The company said it aims to maintain a competitive advantage by using technology to improve all aspects of its business. The use of generative AI by producers is "expanding rapidly" and has been applied to about 300 films, mainly in the post-production stage. Wall Street institutions collectively lower target prices Netflix's current expected price-to-earnings ratio has dropped to about 21 times, well below its historical average. The current valuation reflects a more pessimistic outlook from investors than its guidance. Investors appear to view the lower-than-expected guidance as evidence that Netflix's more conservative valuation multiple is reasonable at this stage of its development. PP Foresight analyst Paolo Pescatore said Netflix's third-quarter guidance "seems to reflect management's caution and the natural maturation of the company's growth model, rather than a sudden deterioration in the business." He added that the guidance "further reinforces the view that Netflix remains strong but is entering a more robust phase of growth, with significantly less room for error given its consistently high expectations." Morningstar analysis said that investors currently generally believe that Netflix’s business is deteriorating. Management's decision to withdraw the user engagement report only exacerbated that perception, which was a major contributor to a near double-digit drop in its stock price in after-hours trading.

Goldman Sachs lowered its price target for Netflix to $94 per share from $110 per share, but maintained a "buy" rating on the streaming giant's stock. Société Générale pointed out that it lowered Netflix’s target share price from US$100 per share to US$95 per share and maintained an “outperform” rating. Evercore ISI also lowered Netflix's target price from $115 per share to $100 per share; KeyBanc lowered Netflix's target price from $115 to $92.

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