{
  "id": 15631804,
  "title": "Netflix's Co-CEO Ted Sarandos Just Gave Investors Bad News Before Earnings",
  "url": "https://urgent.news/2026/10/19/netflixs-co-ceo-ted-sarandos-just-gave-investors-bad-news-before",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-19T16:45:01.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/19/netflix-s-co-ceo-ted-sarandos-just-gave-investors-bad-news-before-earnings/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "On the eve of Netflix's earnings release, Co-CEO Ted Sarandos provided investors with less-than-exciting news. The company plans to reduce its staff by around 6%, and Sarandos has admitted that the streaming giant isn't expanding as quickly as he would prefer. These developments are not the type of information investors crave as they could indicate an impending weak quarter. Netflix's stock has been on a downward trend throughout the year, and this news will likely add to the woes of a stock that has already been experiencing a significant decline. Despite the setbacks, management assures employees that they are still on track to hit the full-year forecast. In July's earnings report, Netflix reported a 13% revenue growth and forecasted revenue to increase by 13% to 14% for the year, amounting to approximately $51 billion. While this growth rate is respectable, it appears Sarandos is not particularly happy with it. Moreover, Netflix has implemented price increases this year, which might have led investors to expect stronger growth. The company has been heavily investing in content and sports events, suggesting that there may be more payoffs needed to justify such investments. Netflix's stock has slumped more than 25% this year, while the S&P 500 has risen by about 13%, signaling investor concerns about the company's future growth. The stock trades at a forward price-to-earnings ratio below 19, which is consistent with the average S&P 500 stock. However, given its growth prospects, the sports, gaming, and international expansion might still offer additional potential for the business in the long run. The company's double-digit growth rate is a positive sign, despite multiple rate hikes over the years, as consumers continue to perceive value in Netflix's streaming plans. While there may be some adjustments needed, the stock could be a good buy at its current discounted valuation, as it's unlikely to plummet further.",
  "summary": "The company is laying off staff, and management hasn't been thrilled with its growth.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Netflix's Co-CEO Ted Sarandos Just Gave Investors Bad News Before Earnings",
        "url": "https://urgent.news/2026/10/19/netflixs-co-ceo-ted-sarandos-just-gave-investors-bad-news-before-15632945",
        "published": "2026-10-19T17:05:01.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}