๐ฎ Netflix forecast disappoints investors
Netflix shares fell by 7% in pre-market trading on October 22 after the streaming service's Q4 forecast only slightly exceeded Wall Street expectations.
The market, accustomed to forecasts being significantly outperformed, is exhibiting caution.
Netflix forecasts Q4 revenue at $11.96 billion, which is only slightly above expectations ($11.9 billion). Q3 revenue stood at $11.5 billion (a 17% increase year-on-year).
The company reported its “best quarter ever for advertising sales” without disclosing figures. The service is actively using generative AI to improve recommendations, search, and content creation.
Co-CEO Ted Sarandos clearly stated that Netflix “is not interested in owning legacy media networks,” refuting rumors about a possible acquisition of a part of Warner Bros. Discovery.
The platform continues to focus on revenue diversification through advertising and video games.
