Netflix shares fell more than 4% after the company released a weaker-than-expected forecast, driven primarily by a stronger US dollar. Despite strong demand for its content, including the popular “Squid Game” series, investors were disappointed by the revenue guidance. The company attributed most of the increase to the weakening currency, with revenue now predicted to be between $44.8 billion and $45.2 billion.
Analysts had high expectations after Netflix’s shares nearly doubled in value over the past year. However, executives acknowledged that the earnings beat wasn’t strong enough to satisfy investor demands. Some analysts raised their price targets on the stock following the results, with the median target now set at $1,385. A strong content slate and growing advertising efforts could support continued revenue gains in the third quarter and beyond.
Source: https://www.reuters.com/business/finance/netflix-shares-fall-weak-dollar-driven-forecast-fails-impress-2025-07-18