Horror Show For Netflix As Streaming Giant Sees £10Bn Wiped Off Its Value Amid Slowing Sales Growth

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Netflix shares fell more than 5% on Wednesday, October 21, after the company reported slower quarterly sales growth and reduced its annual advertising revenue forecast. The drop erased about £10 billion from its market value, according to This Is Money; the shares were also down almost 30% in 2026.

Netflix shares fell more than 5% on Wednesday after the streaming company reported slower sales growth and cut its full-year advertising forecast, wiping about £10 billion from its market value, according to This Is Money. The results point to a more measured pace of revenue growth and a weaker advertising outlook, adding pressure to a stock the report said was already down almost 30% in 2026.

Netflix said sales rose 11.8% to £9.6 billion in the three months to the end of September. That was slower than the 17.2% growth reported for the same quarter a year earlier. The company also forecast sales growth of 11.5% in the final quarter, compared with 17.6% in the corresponding quarter last year, according to the report.

The company lowered its annual advertising revenue forecast from £2.24 billion to just over £2 billion. Netflix attributed the change to a “slightly slower than expected rollout” of some advertising product capabilities. The report did not provide a more detailed breakdown of the forecast reduction or say which capabilities were delayed.

The share-price move followed the release of quarterly results on Tuesday. This Is Money reported that the stock was close to a two-year low after Wednesday’s fall. It also cited a series of recent setbacks: Netflix had said the previous week it would cut 1,000 jobs, and earlier in 2026 it lost a takeover contest for Warner Bros. to Paramount Skydance.

Slower Growth Tests Netflix’s Valuation

The results matter because investors are weighing Netflix’s ability to keep growing revenue against the company’s expectations for advertising and subscriber engagement. The reported decline in the growth rate—from 17.2% a year earlier to 11.8% in the latest quarter—does not mean sales fell: sales increased, but at a slower rate. The lower fourth-quarter growth forecast suggests that investors should not assume the earlier pace will quickly return.

The advertising revision is another signal investors will watch. Netflix has been developing advertising as a revenue stream, but the company’s explanation points to a slower rollout of some product capabilities. It is not clear from the report how much of the revised forecast reflects timing, changes in demand, or other factors. The share-price drop shows the immediate market response, but it does not by itself establish the long-term effect on Netflix’s business.

AJ Bell head of financial analysis Danni Hewson said Netflix appeared to lack direction and that the advertising downgrade added to a sense of drift. She also said concerns about whether recent releases were capturing viewers’ attention were contributing to worries about growth. Those are her assessments, not measures of audience performance supplied in the report.

A Run of Pressure on Netflix

The October results arrive after other developments that have drawn attention to Netflix’s costs and strategy. The company said it would cut 1,000 jobs in the week before the results, according to This Is Money. Earlier in the year, Netflix lost a bid for Warner Bros. in a takeover contest won by Paramount Skydance. The source does not specify the terms of that contest or how it affected Netflix’s finances.

The report also noted that Netflix’s 2026 share-price performance had weakened before the latest results, with shares down almost 30% for the year and close to a two-year low on Wednesday. That annual decline is distinct from the more-than-5% fall on the day. The report does not state the exact share price, market capitalisation before the fall, or the method used to calculate the £10 billion reduction.

Netflix’s advertising forecast is part of a business update, not an announcement that it is abandoning the advertising tier. The company’s stated reason for lowering the forecast was slower-than-expected rollout of some ad products. The available report gives no further detail on launch dates, advertiser demand, or the contribution advertising has already made to revenue.

““Slightly slower than expected rollout of some ad product capabilities.””

— Netflix, as quoted in the report

Details Behind the Ad Cut

The report does not include Netflix’s full earnings release, so several details remain unavailable here. It does not give the company’s explanation for the slower quarterly sales growth beyond the figures, nor does it specify how much of the advertising forecast reduction is tied to delayed product capabilities. It is also unclear when the affected advertising features will be fully rolled out.

The source does not provide subscription additions, viewing figures, operating profit, or a detailed regional breakdown. Those measures could help explain the sales trends and the concerns Hewson described, but they cannot be inferred from the figures reported. The precise market value calculation behind the estimated £10 billion loss is also not explained.

The article describes the stock as close to a two-year low and down almost 30% in 2026, but it does not state the exact closing price or whether the decline was measured at a particular point during trading. The reported figures should therefore be read as the source’s account of the market move, not as a complete share-price history.

Investors Await the Next Update

Netflix’s next reported results and any further guidance will show whether quarterly sales growth continues at a slower pace and whether the company’s advertising products roll out as planned. The company has said the annual advertising forecast is now just over £2 billion; the source does not give a revised timetable or say whether Netflix expects to update that estimate before its next results.

Investors will also be watching the final-quarter sales outlook of 11.5% growth and any company commentary on demand, viewing trends, and advertising. Until Netflix provides more detail, the causes of the slowdown and the likely financial effect of the delayed capabilities remain uncertain. This report describes a market reaction to published results; it does not establish how the shares will perform next.

Key Questions

Why did Netflix shares fall?

According to This Is Money, shares fell more than 5% after Netflix reported slower sales growth and cut its annual advertising revenue forecast. The report said the move reduced the company’s value by about £10 billion.

How much did Netflix sales grow in the latest quarter?

Sales rose 11.8% to £9.6 billion in the three months to the end of September, according to the report. Growth was 17.2% in the same quarter a year earlier.

What changed in Netflix’s advertising forecast?

Netflix reduced its annual advertising revenue forecast from £2.24 billion to just over £2 billion. The company cited a slightly slower-than-expected rollout of some advertising product capabilities.

How much were Netflix shares down in 2026?

This Is Money reported that the shares were down almost 30% in 2026 and close to a two-year low on Wednesday, October 21. The report does not give an exact closing price.

What is still unknown about the forecast cut?

The report does not say which advertising capabilities were delayed, when they will be rolled out, or how much of the forecast reduction reflects timing rather than other factors. It also provides no detailed audience or regional sales figures.

Source: rss