Netflix shares slide 4% as slowing sales growth raises fresh concerns

Shares fell 4.8% in early New York trading on Wednesday. Netflix shares are down 30% this year, while the S&P 500 has gained 13%, highlighting the stock’s sharp underperformance against the broader market.

Netflix reported third-quarter revenue of $12.9 billion, broadly matching Wall Street expectations. However, its forecast of $13.4 billion in fourth quarter sales came in below analysts’ estimates, pointing to continued pressure on growth.

Revenue growth, which stood at 17.6% in the final quarter of last year, is now expected to slow to 11.5% in the fourth quarter. Netflix said its advertising business was behind part of the shortfall and is on track to generate $300 million less than previously expected.