Netflix Stock Deflates to Two-Year Low. What Will It Take to Revive Revenue Growth?

Netflix shares fell to their lowest level in two years after its third-quarter results showed slower revenue growth and a shortfall in expected advertising sales. The company lowered its 2026 advertising revenue forecast and gave a slightly weaker-than-expected outlook for fourth-quarter revenue, raising questions about how it will sustain audience engagement and growth.

Netflix now expects $2.7 billion in advertising sales for 2026, $300 million below its previous forecast, citing delays in developing some advertising features. Co-CEO Ted Sarandos said the company needs to improve its core offering of popular films and programmes; Netflix has also reshaped its content leadership and cut 1,000 jobs. Some analysts argue it should respond to the popularity of short-form video on YouTube, TikTok and Instagram, while others see room to earn more from its 325 million-plus subscribers. The article reports the shares fell nearly 30% year to date and traded below $64 in premarket trading.