Story perspectives

Netflix Stock May Slip Amid Weak Q2 Earnings

7/13/2026

Summary

Netflix Stock Slump

Netflix may see its stock fall after its July 16 second-quarter earnings that could show weak growth.
The shares fell 40% in 2018 and 70% from late 2021 to mid-2022, while competition intensifies as Paramount completes an acquisition and Disney gains a stake in FuboTV.
Low subscriber engagement cuts ad revenue, limits content data, reduces excitement for new releases, and prompted Netflix to add a low-priced ad tier and password-sharing limits in 2022.

Summary

Netflix Diversifies Revenue

Netflix is targeting new revenue streams by launching video podcasting and expanding its gaming unit.
Netflix plans to grow its Netflix House venues, adding a Las Vegas site slated to open in 2027 after Dallas and Philadelphia.
In March, Netflix bought InterPositive for $600 million, a filmmaking-technology firm founded by actor Ben Affleck.
Executives are evaluating live-TV channels and have explored bidding for future FIFA World Cup rights to capture sports audiences.

History

Historical Context

Netflix began as a DVD-mail service in 1997, added a monthly subscription in 1999, and launched streaming in 2007. A 2011 split of its DVD and streaming plans—later retracted—cost about 800,000 subscribers and triggered a stock plunge, teaching investors the need for diversified growth. The lesson shapes today’s ad-supported tiers and gaming push as Netflix competes with Amazon and Apple.

1 of 3

Netflix Stock Slump

Netflix may see its stock fall after its July 16 second-quarter earnings that could show weak growth.
The shares fell 40% in 2018 and 70% from late 2021 to mid-2022, while competition intensifies as Paramount completes an acquisition and Disney gains a stake in FuboTV.
Low subscriber engagement cuts ad revenue, limits content data, reduces excitement for new releases, and prompted Netflix to add a low-priced ad tier and password-sharing limits in 2022.

1 / 3