Netflix Stock Drops 46% Amid Revenue Slowdown

Netflix shares closed near $82, marking a decline of approximately 46% from the all-time high reached in June 2025. This downturn follows a deceleration in revenue growth, which dropped from 17.6% in the fourth quarter of 2025 to a projected 11.7% for the third quarter of 2026.

Market pressure intensified following the departure of Reed Hastings from the board and $130 million in insider share sales. The company also faced setbacks after walking away from assets belonging to Warner Bros. Discovery and losing a $22 billion bidding war for Roku.

To stabilize its valuation, the company authorized a $25 billion share repurchase program, executing $4.7 billion in buybacks during the second quarter. Netflix is currently shifting its business model toward ad-supported tiers, which now attract over 250 million monthly active viewers, and expanding its live programming slate through partnerships with the NFL and WWE.

Despite the stock volatility, the company reported second-quarter revenue of $12.56 billion and net income of $3.40 billion.