Netflix shares drop on slowing engagement, revenue growth

Netflix's stock fell more than 5% on Tuesday following its quarterly earnings report, which did not satisfy investor worries about a slowdown in viewer engagement and revenue growth. In a letter to investors, the company acknowledged concerns about subscriber view hours growth and stated it was confident in accelerating that growth.

The streaming giant has been struggling to meet investor expectations due to competition from other streaming services and entertainment forms, including gaming and sports. Netflix's revenue and net income for the third quarter ended in September were US$12.87 billion and US$3.7 billion, respectively, exceeding investor expectations.

However, the company did not disclose overall figures for subscriber view hours in the quarter, noting that in India, the metric rose 24% compared to the same period last year. In July, Netflix reported that subscribers spent 97 billion hours watching content in the first half of 2025, a 2% increase year-over-year. Co-CEO Ted Sarandos acknowledged that Netflix's growth had fallen short of expectations, suggesting that live shows could provide a boost.

The company is reportedly planning to cut around 6% of its workforce, or 1,000 jobs, according to media reports.