Overview
- Shares fell about 5.3% to close at $65.04, trading as low as $64.10 and marking a new 52‑week low after the guidance update.
- Netflix reported third‑quarter EPS of $0.87, beating expectations, while revenue of $12.87 billion came in line with forecasts.
- Management lowered its 2026 ad‑revenue target to roughly $2.7 billion and guided fourth‑quarter revenue to about $13.44 billion, below the $13.51 billion analyst consensus.
- Several sell‑side firms trimmed price targets though many kept Buy ratings, and analysts cited slower ad momentum and content execution as drivers of the cuts.
- Technical traders note the close below $65.11 and below the 50‑ and 200‑day EMAs as a potential breakdown that will be confirmed or reversed by daily and the weekly close on Friday.