Netflix’s Q2 Earnings This Week Spotlights Growth Concerns

Guess what—tech earnings season is back. Yes, you know you missed it. Netflix, as usual, will kick off the quarterly parade of earnings updates, releasing its second-quarter numbers on Thursday. The video-streaming giant’s quarterly updates have become humdrum affairs lately, but this one might be different, given that the company’s stock has lately been sliding as investors fret about its future growth prospects.

Let’s not overstate things: On most metrics, Netflix shares still trade at a big premium to the older entertainment firms like Disney, according to Koyfin data. It’s nowhere near the low it reached in 2022 after a sell-off triggered by a sharp slowdown in growth. But Netflix shares have fallen 44% since hitting an all-time high about this time last year, even as the S&P 500 has risen 22%. What gives?