Netflix shares fell after a report suggested subscribers are spending less time on the streaming platform, deepening concerns that the company's growth might be losing momentum, particularly as competition from YouTube and other streaming services intensifies.
The stock declined 0.4% in premarket trading Tuesday after closing down 3% on Monday at $63.90. Netflix touched a 52-week low of $62.86 during the session. Netflix shares have lost nearly 32% this year and have been trading about 45% below their 52-week high of $116.73, reached on Nov. 13, 2025.
Bloomberg, citing people familiar with Netflix's internal data, reported Sunday that subscribers are opening the app on fewer days each month than they did a few years ago. Average viewing time per subscriber has also declined, according to Bloomberg.
Netflix couldn't immediately be reached for comment.
Declining viewership means even though the company has continued to attract new subscribers, existing customers might be spending less time watching. This matters because weakening engagement could eventually hurt subscriber retention, pricing power and advertising revenue.
Monday's decline extended a selloff following Netflix's earnings report last Tuesday. In the third quarter, revenue rose 12% from a year ago and per-share earnings jumped 49%, both exceeding Wall Street expectations. Subscriber retention remains healthy, as management said recent price increases haven't triggered unusual cancellations.
Still, investors were disappointed by the company's weaker outlook as Netflix management projected fourth-quarter revenue below analyst expectations. The guidance implies revenue growth will slow to 11.5% from 11.8% in the third quarter, marking a fourth consecutive quarter of deceleration.
Wall Street has grown increasingly cautious. More than 20 brokerages lowered their price targets following the earnings report.
Netflix is expanding its lineup of live sports and international programming to attract viewers, including three NFL games and a heavyweight boxing match. The company also recently announced layoff plans and leadership changes aimed at improving its programming and operational efficiency.
Investors will be watching whether those investments can translate into more viewing, rather than simply higher costs.