Netflix attempted to calm jittery investors yesterday following a week that included mass layoffs and the largest executive overhaul in the streaming giant’s history.
So far, it doesn’t appear to have worked as the company’s stock price is now trading at a low not seen since August of 2024.
The company reported third-quarter earnings yesterday, and while they were more or less in line (if not slightly above) Wall Street analysts’ estimates, the company’s revenue forecast — particularly among its advertising business — was weaker than what investors wanted, which sent the stock plummeting in after-hours trading.
And while co-CEOs Ted Sarandos and Greg Peters did their best to put on a brave face and spin the narrative that brighter days are ahead — the streamer is still mired in a prolonged slump that’s seen its market cap drop, its engagement from viewers stagnate and a failed pursuit of Warner Bros.
Overall, Netflix’s stock is down 25% since the start of 2026, and down 44% over the last calendar year.
Speaking with analysts yesterday, Sarandos praised Bela Bajaria, who was ousted as chief content officer last week, while saying multiple times that “I know we can do better,” and “we see an opportunity to take our slate to the next level.” To that end, Sarandos also praised the incoming Peter Rice — though ousted film boss Dan Lin was not mentioned.
Sarandos said of Rice, “most importantly… Peter Rice understands talent relations.” (As we previously reported, Lin’s weak spot was said to be his relationship with talent.)
Meanwhile, Peters called the mass layoffs “hard trade-offs” in the name of “long-term growth.”
Despite the rough year, Sarandos was adamant that the streamer, which has experimented with games, live events and podcasts in recent years, does not need to change overall course. “There is no need for a fundamental shift in the strategy. We do need better execution in the U.S. Our content around the world is largely working,” the co-CEO said.