Netflix Stock Plummets as YouTube Gains US Market Share
Netflix shares are facing their worst year since 2022 amid declining US market share and investor concerns over a lack of blockbuster content.
Shares of Netflix have declined more than 40% over the past 12 months, dropping 48% from a June 2025 peak. The company is on track for its worst year since 2022, with shares falling 26% in 2026 alone. This decline comes despite a 13% increase in second-quarter revenue to over $12.6 billion, though financial performance was affected by tax payments following a $2.8 billion payment from Warner Bros. Discovery after a failed acquisition.
Investor confidence has weakened due to a perceived lack of blockbuster content and declining subscriber engagement. Financial institutions including HSBC and Wells Fargo have downgraded the stock, with HSBC citing a decline in the reception of original content. Market pressure is further intensified by Alphabet Inc.'s YouTube, which reached a record 14.2% share of the US TV market in July, while Netflix fell below 8%.
To combat these challenges, Netflix is diversifying its business model to include gaming, podcasts, and live events while expanding its advertising sector. However, third-quarter revenue guidance of $12.86 billion fell short of analyst expectations of $13 billion. Analysts expect the slowest revenue growth since 2023 when the company reports third-quarter earnings on October 20.
