Netflix shares plummeted nearly 12% following a weak forecast. This is the worst drop in four years.

Shares of streaming giant Netflix fell nearly 12% during trading on July 17—to their lowest level since the fall of 2024—after the company warned of a slowdown in revenue growth for the current quarter, the second in a row. The weak outlook confirmed investors’ concerns about the company’s prospects.

This is the largest intraday drop since April 2022, according to Bloomberg . At the time of this writing, the company’s shares had recovered some of their losses and were trading 8.7% below their July 16 closing price .

Although Netflix still has more subscribers and a larger audience than any other paid streaming service, its revenue growth has slowed. According to the company’s estimates, revenue will increase by 11.7% in the third quarter—the slowest pace since the third quarter of 2023. The market was also alarmed by the company’s decision to reduce the frequency of its content viewing reports.

Netflix shares have been under pressure for some time, notes The Wall Street Journal. Even before the earnings report was released, the stock had fallen more than 40% since the start of the year: the company’s failed attempt to acquire Warner Bros. Discovery, followed by financial results that disappointed the market, heightened concerns that it had lost its previous growth momentum.

This article was AI-translated and verified by a human editor