Nasdaq 100: Netflix Slips After Hours as Subscriber Growth Falls Short of Forecasts

Netflix Falls After Earnings Beat as Subscriber Growth Misses Estimates

Netflix shares edged down 0.76% to $1,264.50 in after-hours trading Thursday, as a solid earnings beat was overshadowed by slower-than-expected subscriber growth. The stock had rallied over 30% since April, reaching a high of $1,341.15 before slipping more than 5% from that peak. Investors now appear more cautious as attention shifts to growth consistency in the back half of the year.

Did the numbers impress or disappoint?

Netflix reported second-quarter earnings of $5.22 per share, topping the $4.88 consensus, with revenue at $10.12 billion, just ahead of forecasts. However, global net subscriber additions came in at 5.1 million—short of the 6 million Wall Street expected. Despite recent initiatives including its ad-supported plan and paid sharing rollout, the softer user growth raised questions about sustained engagement.

The company maintained full-year guidance but signaled that Q3 subscriber gains could moderate following a strong Q2. Management cited seasonal factors and prior momentum, which some analysts took as a signal that near-term growth may level out.

What does the chart suggest for traders?

Netflix is testing key technical support at its 50-day simple moving average, now near $1,223. A close below that level could trigger deeper consolidation, while support remains intact above the longer-term 200-day average at $979.82. The recent failure to hold above $1,300 suggests buyer enthusiasm has cooled, and traders may wait for fresh signals before stepping in.

How are analysts and valuation models responding?

Despite the post-market pullback, analyst sentiment remains largely constructive. Several firms have reiterated Buy or Overweight ratings, citing strong cash flow, improving margins, and long-term growth from the ad-supported tier. However, others flagged valuation concerns, noting that Netflix’s forward P/E multiple is trading well above historical norms.

The mixed reaction highlights the tension between near-term execution and long-term positioning. Some analysts argue that Netflix is evolving into a more diversified media platform, but others caution that investor expectations may be ahead of underlying subscriber trends.

What should traders watch going forward?

Netflix’s commentary on ad monetization, regional trends, and Q3 expectations will be closely watched during the investor call. Broader market participants will also look to upcoming earnings from other mega-cap tech names and economic data that could influence rate expectations. For Netflix, holding support levels and reinforcing its growth narrative will be key to sustaining investor interest.

More Information in our Economic Calendar.