Netflix shares sink on earnings after a dramatic content executive shake-up
Netflix disappointed investors in its third-quarter earnings report. Investors have been worried about slowing engagement growth.
Netflix shares fell as much as 6% after the company reported its Q3 earnings and provided a weak outlook for the remainder of the year. The streaming giant exceeded expectations for the third quarter, but its revenue growth slowed for the third consecutive quarter. Netflix projected that the deceleration would continue in the fourth quarter.
The streaming leader laid off around 1,000 employees last week and announced changes in its content leadership. Peter Rice, a former Fox and Disney executive, will now oversee the company's film division. Dan Lin, previously in charge of film, has also departed. While Netflix is expanding, Forrester's Mike Proulx asserts that its growth rate is slowing.
The rapid growth of the streaming leader has recently come under pressure as investors worry about engagement growth and fierce competition from YouTube and other free streamers.
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