Netflix stock hits 52-week low after Bloomberg viewing report

Netflix stock slid to a new 52-week low on Monday, Oct. 26, after a Bloomberg report said members are watching less, a market report said. Shares fell 3% after Bloomberg reported that users open the app on fewer days each month than they did a couple of years ago.

The drop added to a rough stretch for the company. Less than a week earlier, Netflix trimmed its ad revenue forecast for the year, and some analysts have grown more cautious on the stock.

Key facts

• Netflix closed at $63.90 on Oct. 26, down $1.95, or 2.96%, and set a 52-week low of $62.86 that day, according to market data.
• Bloomberg reported, citing people familiar with the matter, that each member watched less in the first half of 2026, even as total watch time rose.
• Netflix now expects about $2.7 billion in 2026 ad revenue, down from its earlier forecast of roughly $3 billion.
• The company is cutting about 6% of its staff, or roughly 1,000 workers.
• The stock was down nearly 30% this year through the close on the Friday before the drop.

What the Bloomberg report said

From January through June, overall viewing time climbed slightly, but Bloomberg reported that the gain came only from Netflix adding members. Each member, on average, watched less. The same report described the decline as modest and said there were no mass cancellations.

Those findings come from unnamed sources. Netflix has not released a per-member viewing figure that confirms or disputes them, and the exact size of the drop is not known.

The company's own numbers point in a similar direction. Third-quarter revenue climbed 11.8%, a market report noted, far faster than the 2% gain in view hours from January through June. Revenue in the U.S. and Canada grew 11%, inside the 8% to 13% range of the price increases Netflix made there in March.

Background

Netflix has also just reported quarterly results. For the quarter ended Sept. 30, it earned 87 cents per share, above the 82 cents analysts expected, according to LSEG. Revenue was $12.87 billion, in line with estimates.

Growth in the quarter came from new members and the March price increases, and Netflix said member reaction to those increases was what it expected. In its shareholder letter, Netflix acknowledged that investors are worried about how fast view hours are growing. It argued that engagement, which it defines as the amount, quality and variety of viewing, is still healthy.

The outlook was softer. Netflix lowered its 2026 ad revenue estimate to around $2.7 billion from roughly $3 billion, blaming a slower rollout of some ad product features. It expects full-year revenue of $51.1 billion, up 13%. That is at the low end of its earlier $51 billion to $51.4 billion range and below the $51.2 billion Wall Street expected, according to LSEG. For the fourth quarter, Netflix forecast revenue of $13.44 billion, driven by membership growth, pricing and ads.

Netflix also said it would lay off about 6% of employees, roughly 1,000 people, and that the cuts would lower its fourth-quarter operating margin by about 120 basis points.

Leadership is changing too. On Oct. 15, Netflix named Peter Rice, the former head of Disney television, as Chief Content Officer starting October 26. He replaces Bela Bajaria, who is leaving after nearly 10 years.

Competition and Wall Street

Analysts and investors have flagged flat viewing and rising competition from YouTube as problems for Netflix. In July, YouTube took a record 14.2% of U.S. TV time, according to Nielsen, compared with 7.8% for Netflix.

Several firms turned more cautious after the earnings report. Wolfe Research cut its rating to Peer Perform from Outperform on Oct. 22, pointing to engagement that has not improved despite higher spending. Pivotal Research lowered its price target to $65 from $70 and kept a Hold rating. Argus kept a Buy rating but cut its target to $95 from $120.

The stock now trades well below its peak. Its 52-week high was $116.73, according to market data. Netflix trades at about 18 times expected earnings, compared with a five-year average of 33 times. Stock prices and the 52-week range change every trading day, so it is not known whether the Oct. 26 low in the market report will hold.

What it means for you

For subscribers, nothing about the service changed with the stock drop. Netflix offers three plans: Standard with ads, Standard and Premium. The Basic plan has been discontinued. Plans are billed monthly on the date a member signed up, and Netflix does not sell annual, multi-month or lifetime plans.

For investors, the debate is about whether Netflix can keep raising revenue if each member watches less. Price increases and new sign-ups have carried growth so far, while time spent per member has slipped, Bloomberg reported.

Practical steps

Members who want to spend less, or who are watching less themselves, have a few options.

• Switch plans. Members can change plans at any time, including moving to the cheaper Standard with ads plan.
• Pause instead of canceling. Netflix lets members pause for 1 month at a time, up to 3 months in total.
• Cancel the right way. Subscribers can cancel at any time on the Manage your membership page and keep watching until the billing period ends. Deleting the app or signing out does not cancel a membership.

What happens next

The next big test comes in January. Netflix's 2027 guidance will be closely watched, and the $56.6 billion consensus implies about 11% growth from members who are watching less. What that guidance will show is not known.

Netflix says it plans to speed up view hours growth with a three-part plan: more entertainment value for members, better technology for the service and stronger monetization.

FAQ

Are people canceling Netflix in large numbers? No. Bloomberg reported that the drop in viewing per member has been modest, with no mass cancellations.

If I cancel, will I lose my profile and history? Not right away. Netflix keeps viewing activity, recommendations, ratings and account details for 24 months after an account closes.

Why did Netflix cut its ad forecast? Netflix pointed to a slower-than-planned rollout of some ad product features. It now expects about $2.7 billion in ad revenue for 2026.