Netflix shares fall 7% in after-hours trading, forecasts 11% growth
Netflix just took a 7% hit in after-hours trading after revealing its latest earnings.
While third-quarter revenue landed at $12.87 billion (right on target), the company expects only 11% growth next quarter, a sign that things are slowing down, especially with ad revenue coming up $300 million short.
Netflix EPS $0.87, layoffs and exits
Even with slower growth, Netflix's earnings per share nudged past expectations at $0.87.
But there's a lot going on behind the curtain: more than 1,000 jobs have been cut, top executives such as Bela Bajaria and Dan Lin are out, and Peter Rice is stepping in as chief content officer.
Despite having more than 325 million subscribers worldwide, Netflix's US TV viewership is just 7.8%, well below YouTube's 14%.
Shares are now down more than 25% this year, adding to last year's steep drop as competition heats up.