Netflix profit jumped 44%, but shares fell as viewing growth stalled
Why it matters: Revenue rose to $12.9 billion and subscribers hit 325 million, yet weaker US and Canada engagement sharpened investor concerns.
Netflix posted stronger third-quarter profit, but investors focused on slowing engagement and sent the stock lower after hours. The streaming company reported revenue of nearly $12.9 billion, up 12% from a year earlier, while net income climbed 44% to almost $3.7 billion. Shares fell nearly 6% after the results. Netflix said revenue in the US and Canada grew 11%, down from 17% a year earlier, as executives pointed to stagnant viewing hours. The company, which has 325 million subscribers, also said full-year revenue growth should be about 13%, roughly in line with earlier expectations. The results came after Netflix cut 1,000 jobs and removed its chief content officer and top two film executives.