US Stock Market Move | Q3 guidance lower than expected, Netflix (NFLX.US) opens down more than 10%

On Friday, Netflix (NFLX.US) opened with a sharp drop of over 10%, marking the biggest decrease since April 2022, now trading at $66.19. On the news front, Netflix released its second-quarter earnings report after the market closed on Thursday. Netflix's Q2 revenue was $12.6 billion, a 13% year-on-year increase, with earnings per share of 80 cents, which was in line with market expectations. It is expected that the third quarter will see a continued slowdown in revenue growth for the second consecutive quarter, further deepening investors' concerns about the future prospects of this streaming media giant. The company expects revenue for this quarter to be $12.9 billion, with earnings per share of $0.82, both slightly below analyst expectations. Over the past year, Netflix has suffered a cumulative decline of over 40%, with the pursuit of the acquisition of Warner Bros. Discovery (WBD.US) and its subsequent financial performance making investors increasingly worried that this media leader has lost its growth momentum. Chief Financial Officer Spencer Neumann said during an analyst conference call, "We do not manage our business on a quarterly basis." He pointed out that Netflix currently only covers about 45% of its addressable market and represents only 5% of global TV viewing time, adding that the company expects to increase revenue by $6 billion this year.