Netflix's shares plunged over 8 percent on Thursday, following a disappointing forecast for its third-quarter revenue growth. The projected 11.7 percent year-on-year increase falls below Wall Street expectations and would represent the slowest expansion since 2023.

Despite largely meeting second-quarter earnings expectations, with revenue up 13 percent to $12.6bn driven by price increases and ad revenue, the outlook overshadowed positive results. The company anticipates ad revenue to reach approximately $3bn in 2026.

Netflix shares have declined 21 percent year-to-date, continuing a slide that has erased over $250bn from its market value since its peak last year. Investor concerns stem from heightened competition and strategic questions, particularly after its unsuccessful bid for Warner Bros Discovery and considerations for Roku.