Fast Money Blog- 7/17/26
This was another volatile week on Wall Street as the escalation between the U.S. and Iran has generally weighed on markets across the globe.
The big story this week was the Q2 2026 earnings release from Netflix, Inc. (NFLX). Let's take a look.
Even though Netflix reported $12.56 billion in Q3 revenue, up 13% year over year, investors were clearly disappointed by slowing growth. Post earnings the stock dropped over 7%.
What are the main reasons why Netflix stock dropped?
Weak Q3 Guidance: The company projects that Q3 revenue will come in at $12.86 billion, a figure that is underwhelming to Wall Street. When a company's forward guidance is weak, it sends a negative message to investors.
Decelerating Growth: The anticipated Q3 revenue projection implies a slowdown in growth and investors are starting to doubt that Netflix can sustain double-digit growth going forward.
Concerns about Audience Engagement: Viewing hours in Q2 increased only modestly, leading investors to question whether or not Netflix can keep audiences interested enough to support long-term subscriber growth. In addition, the company said it will move from publishing engagement reports twice a year to once a year, which some investors viewed as reducing transparency.
I have to agree that Netflix may have seen its best years behind it. Unfortunately if you are currently a Netflix shareholder it might be time to sell half of your positions based on the future forecast.
Tyrone Jackson
The Wealthy Investor