July 18 (Reuters) - Netflix (NFLX.O), opens new tab shares declined more than 4% on Friday as some investors were disappointed by a revenue forecast that was driven more by a weaker dollar than strong demand for the streamer's content.But executives said much of the increase in the annual forecast was driven by weakness in the U.S. dollar, now predicting revenue of between $44.8 billion and $45.2 billion, up from $43.5 billion to $44.5 billion previously.
"When your shares are already binge-watched to perfection, the earnings beat needed to be stronger to satisfy expectations," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
"Instead, some sold on the good news and maybe questioned whether the positive FX effect will be there a few quarters down the road."
A crackdown on password-sharing, more sports content and its ad-supported tier helped Netflix draw tens of millions of new viewers in 2024. But the company stopped reporting subscriber numbers earlier this year, shifting focus to metrics like revenue and profit, a move that has raised concerns about growth.
Netflix shares fall as weak dollar-driven forecast fails to impress
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