On October 21, Netflix fell over 6% in Pre-Market Trading. The move followed the company’s latest quarterly update, which showed solid third-quarter profit growth but weaker-than-expected forward guidance and a cut to its advertising revenue outlook.

Netflix reported third-quarter revenue of $12.9 billion, up 11.8% year over year, and net income of $3.66 billion, up 43.8%. However, it guided fourth-quarter revenue to $13.4 billion, implying 11.5% growth and a fourth straight quarter of deceleration, while expected fourth-quarter net income of $2.787 billion missed market expectations. The company also lowered its 2026 advertising revenue forecast to $2.7 billion from $3.0 billion, reinforcing investor concerns that ad monetization is scaling more slowly than previously anticipated. While some brokerages maintained constructive longer-term views, several also cut price targets after the report.

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