TLDR
- Netflix stock fell 1.68% in after-hours trading Thursday, to $74.20
- A Wall Street Journal report says viewer engagement is slipping — people are watching less and finishing fewer shows
- Netflix is exploring live channels and bundling third-party services like Peacock inside its app
- Q2 earnings are due July 16; analysts expect EPS of $0.79 and revenue of $12.58 billion
- Wall Street holds a Strong Buy consensus with an average price target of $113.68
Netflix stock dropped 1.68% in after-hours trading Thursday, hitting $74.20, after a Wall Street Journal report raised fresh concerns about viewer engagement.
The report says Netflix executives have been discussing a key problem: viewers are spending less time on the platform and finishing fewer shows. That matters because engagement is closely tied to churn — when people stop watching, they start cancelling.
Signs of the engagement slowdown were reportedly a topic at the company’s annual business review earlier this year.
To address it, Netflix is weighing live channels that would stream certain shows around the clock. It’s also exploring bundles that would let users subscribe to other services like Peacock directly inside the Netflix app.
That’s a notable shift for a company that has long prided itself on simplicity.
Netflix Looks at Live Content and Sports
Netflix is also eyeing live sports as a driver of engagement. The company is reportedly looking at major events, including the 2030 and 2034 FIFA World Cups.
Live content could also give a boost to its advertising business, which brought in roughly $1.5 billion last year and is expected to double to around $3 billion in 2026.
In the meantime, the company has been experimenting with cheaper formats — video podcasts, short clips from publishers, and a news partnership with France’s TF1 that it may expand across Europe and Latin America.
All of this is happening as the broader media landscape reshuffles. Fox is buying Roku for about $25 billion, Comcast is splitting its media units, and Paramount is working to close its $81 billion deal for Warner Bros. Discovery.
Q2 Earnings Due July 16
Netflix reports Q2 results on July 16. Wall Street analysts are expecting earnings per share of $0.79, which would represent 10% year-over-year growth. Revenue is forecast to rise 13.1% to $12.58 billion.
Investors will be watching closely for any signals on whether recent price hikes are helping offset slower growth, or pushing users toward cancellation.
Wall Street overall remains bullish. Netflix carries a Strong Buy consensus based on 24 Buy ratings and 8 Holds, with an average price target of $113.68 — implying about 50% upside from Thursday’s after-hours price.
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