Netflix’s stock just collapsed to a 2-year low: Is the streaming giant’s ad business in trouble?
Shares in Netflix Inc. (Nasdaq: NFLX) have fallen to a more than a two-year low after the streaming giant posted its Q3 2026 results yesterday. Despite hitting Wall Street’s projected revenue target of nearly $12.9 billion for the quarter, an update on the company’s increasingly critical ad business dampened investor optimism, sinking the stock with it. Here’s what you need to know. What’s…
Shares of Netflix Inc. (NFLX) have plummeted to a two-year low following the company's Q3 2026 results announcement. Despite meeting Wall Street's revenue expectations, concerns over the company's ad business sent the stock tumbling. Netflix reported revenue of $12.87 billion, a 11.8% year-over-year increase, and earnings per share of 87 cents, exceeding by five cents per share.
However, investors were dismayed by the lowered forecast for the streaming giant's ad revenue, which now stands at $2.7 billion for the full year 2026, a 10% drop from the previously anticipated $3 billion. This news, coupled with the slower-than-anticipated rollout of new ad products, has investors questioning Netflix's ad strategy and its long-term prospects.
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