Netflix reported $12.56 billion in second-quarter revenue, up 13.35% from the same quarter last year, even as its stock has fallen 21.18% in 2026 amid worries about slowing growth and intensifying competition from YouTube and short-form video platforms. Management expects full-year revenue growth of 13% to 14%, and the stock trades at about 18.69x forward earnings, well below its historical average. Netflix says it has reached less than 45% of the roughly 800 million households it considers addressable and captures only about 7% of an estimated $670 billion revenue opportunity across its current markets and entertainment categories. The company also points to advertising, live programming and generative AI production efficiencies, noting six of its 10 biggest member sign-up days over the past five years came from live events, though live content is expected to account for only about 1% of viewing hours this year. On the bear side, viewing hours rose just 2% in the first half of 2026, and Netflix guided to third-quarter revenue of $12.86 billion, slightly below Wall Street's $13 billion estimate, while hedge fund ownership fell to 121 funds holding about $10.0 billion at the end of Q2 from 144 funds holding roughly $11.2 billion in the prior quarter.
Netflix IncNetflix reported Q2 revenue of $12.56B, up 13.35% year over year, with full-year growth guidance of 13-14%
Robinhood Markets IncYouTube is named as a competitor whose short-form video offerings are intensifying pressure on Netflix
