SAN FRANCISCO: Netflix shares fell more than five per cent on Tuesday afternoon after its quarterly earnings report failed to ease investor concerns about slowing viewer engagement and revenue growth.
"We know there's some investor concern about our view hours growth," the company said in a letter to investors, referring to how it measures engagement, adding that it was "confident" it could accelerate that growth.
The California-based streaming giant has struggled to meet investor expectations for several quarters as it faces competition from other streaming services, gaming and sports.
Netflix "has underperformed significantly over the last 6-12 months", and investors are concerned "about soft engagement trends, decelerating revenue growth, a slower margin expansion outlook, and most recently content executive leadership changes", John Belton, a portfolio manager at Gabelli Funds, told AFP in a statement.
