On July 17, Netflix fell 8.5% in pre-market trading, trading at $67.45/share, with turnover of $10.93 million. The decline was triggered by weaker-than-expected Q3 guidance and a wave of analyst target price cuts following its Q2 earnings release.

Netflix reported Q2 revenue of $12.56 billion, slightly below the consensus estimate of $12.58 billion, while EPS of $0.80 marginally beat the $0.79 estimate. However, the company guided Q3 EPS at $0.82, below the Street's $0.84 expectation, and narrowed its full-year revenue outlook to $51.0-$51.4 billion. The company also announced it would reduce the frequency of its user engagement report, raising transparency concerns among investors.

Jefferies cut its target price from $110 to $90, Piper Sandler from $115 to $85, Barclays to $85, and Morgan Stanley from $115 to $90, collectively pressuring sentiment. Netflix stated it would increase content spending by approximately 10% this year, focusing on live sports, AI-driven content production, and video podcasts to seek growth breakthroughs. The stock has now fallen nearly 20% year-to-date and declined following each of its last four earnings reports.

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