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Netflix’s Recent Earnings Impact
Netflix (NASDAQ: NFLX) shares dropped 12% over three consecutive trading days following the announcement of its third-quarter earnings results on October 17, 2023. Despite reporting a 17.2% increase in revenue to $11.51 billion, the company fell short of its projected 17.3% growth. Additionally, net income rose only 9% to $5.87 per share, missing expectations of a 27% increase.
This marks a troubling trend for Netflix, as the market’s reaction to its earnings has worsened over the past five quarters. For instance, in the previous quarter, shares fell 10% after earnings were released. Looking ahead, Netflix projects a similar revenue growth of around 17% for the fourth quarter, with net income expected to increase by 28%.
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