Netflix shares slide to their lowest price in two years after the US streaming giant cuts its advertising forecast
Netflix shares are down 26% this year and set to erase about $17 billion in market value, with at least 14 brokerages cutting their price targets after the streaming giant slashed its advertising forecast.Co-CEO Ted Sarandos admitted Netflix needs "better execution in the US" as the company also moves to cut around 1,000 jobs — roughly 6% of its workforce.
The stock fell 6% in premarket trading on Wednesday and is down more than 26% this year, putting about $17 billion of market value at risk. At least 14 brokerages have lowered their price targets since Tuesday's results. Co-CEO Ted Sarandos admitted 'we do need better execution in the U.S.' Netflix has also cut about 6% of its workforce, reportedly around 1,000 jobs.
Chief content officer Bela Bajaria was ousted last week, and Peter Rice starts on 26 October.
Netflix lost a bidding war for Warner Bros Discovery earlier this year.
Sarandos insisted: 'There is no need for a fundamental shift in the strategy.'