Netflix shares are down 21.18% in 2026 amid engagement and competition concerns, but second-quarter revenue rose 13.35% year over year to $12.56 billion. Viewing hours grew 2% in the first half, raising questions about whether newer businesses can sustain growth.
Management expects full-year revenue growth of 13%-14%, while Wall Street forecasts a similar pace over the next couple of years. Netflix says it has reached less than 45% of roughly 800 million addressable households and generates about 7% of a $670 billion estimated opportunity in its current markets and entertainment categories. Management said six of Netflix’s 10 biggest member sign-up days in the past five years came from live events, which are expected to make up about 1% of viewing hours this year.
Netflix expects third-quarter revenue of $12.86 billion, below Wall Street’s $13 billion estimate. The company argues viewing hours alone are a poor measure of business health, saying live events may generate fewer hours than scripted content but can bring sign-ups, advertising revenue and broader engagement. The stock trades at about 18.69 times forward earnings, below its historical average. Insider Monkey reported that hedge funds holding Netflix shares fell from 144 to 121 in Q2, while the value of their positions declined from about $11.2 billion to $10 billion.
