Netflix shares sink 6% despite earnings beat after a dramatic content executive shake-up
Source: Business Insider ·
Netflix disappointed Wall Street in its third-quarter earnings report. Investors have been worried about slowing engagement growth.
From the source
Netflix hired Peter Rice as its new content chief as co-CEO Ted Sarandos tries to boost growth.Frank Micelotta/Tubi via Getty Images; Samuel Boivin/NurPhoto via Getty Images; Chris Pizzello/APNetflix shares sunk 6% despite an earnings beat in Q3.Shares had fallen more than 44% in the last year as investors worry about slowing engagement growth.The streaming leader laid off about 1,000 employees last week and changed its content leadership.Netflix's third-quarter earnings failed to excite investors, a week after a major content executive shuffle and its biggest round of layoffs since 2022.Here's how the streaming giant's Q3 financial results compared to the company's forecast:Revenue: $12.87 billion vs $12.86 billion estimated ($11.5 billion in Q3 2025)Earnings: $0.87 per share vs $0.82 per share estimated ($0.59 per share in Q3 2025)Shares fell 6% in immediate after-hours trading on Tuesday. Wall Street's expectations were roughly in line with Netflix's guidance.Heading into Q3…