Netflix stock declines after second quarter earnings miss guidance

Netflix shares fell sharply on July 16, 2026, after the company published its second quarter results. Revenue grew 13.4% compared to last year, reaching $12.6 billion, and earnings per share rose 11% to $0.80. However, investors were disappointed by the company's forecast for the third quarter. Netflix predicted revenue of $12.9 billion, which was lower than Wall Street had expected. The stock dropped to its lowest price in 52 weeks. Netflix said the Winter Olympics and FIFA World Cup hurt its business in the first half of 2026, because it does not hold broadcast rights for those events. The stock was already down 24% for the year before the announcement, and some investors are now debating whether the lower price is a good time to buy.