{
  "id": 15938876,
  "title": "Netflix Is Down 38% Since Completing Its 10-For-1 Stock Split. Here's Why the Sell-Off Is Worsening After Its Latest Earnings.",
  "url": "https://urgent.news/2026/10/21/netflix-is-down-38-since-completing-its-10-for-1-stock-split-heres",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-21T19:30:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/21/netflix-is-down-38-since-completing-its-10-for-1-s/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "After Netflix announced a 10-for-1 stock split on November 17, 2025, its stock saw a rise in early November 2025. However, since the split, the stock has plummeted by 37.9% as of October 20, 2025. Netflix's revenue for Q3 2026 increased by 11.8% compared to Q3 2025, and operating margins improved from 28.2% to 34.6%. Yet, Netflix has reduced its 2026 revenue forecast to $51.1 billion, which is a mere 0.2% below the midpoint of its prior forecast range. Additionally, Netflix now anticipates $2.7 billion in full-year ad revenue, down from the prior forecast of $3 billion, primarily due to a slower rollout of certain ad product capabilities. While ad revenue has surged by 2.5x to over $1.5 billion in 2025, it remains a small fraction of Netflix's total revenue. Analysts are concerned about Netflix's declining growth and heightened competition in the streaming industry. Moreover, YouTube's share of U.S. TV time is surging faster than Netflix, potentially eclipsing the platform in revenue. The shift in viewership from TV to mobile, coupled with YouTube, Instagram, and TikTok's strong position, could exacerbate Netflix's challenges. Price increases have also put pressure on subscribers. Despite these concerns, Netflix's valuation appears attractive, trading at just 17 times its earnings forecast for 2027.",
  "summary": "Netflix's quarterly results were solid, but a few key metrics are weighing on the stock.",
  "key_points": [
    "Netflix stock down 38% since 10-for-1 split on November 17, 2025",
    "Q3 2026 revenue up 11.8% from Q3 2025, operating margins improved to 34.6%",
    "Netflix cuts 2026 revenue forecast to $51.1B, ad revenue down to $2.7B"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "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."
}