Netflix shares slide 5% despite Q3 earnings beat

Clay Webster FXStreet

Netflix (NFLX) stock sank 5% afterhours after the streaming company post a decent earnings beat. Netflix posted GAAP earnings per share (EPS) of $0.87 or 5 cents above the Wall Street consensus. Revenue of $12.87 billion was in-line with consensus and rose 12% YoY.

But shares fell about 5% from their close at $68.70 to the ~$65 range. That puts the share price near the post-earnings sell-off from the previous quarter on July 17.

Operating margin came in above forecast in the third quarter at 34.6%, up from 28.2% in Q3 2025. Management said it was primarily due to the timing of expenses.

"In Q3, revenue growth was driven primarily by subscription revenue, reflecting increases in memberships and pricing, growth in advertising revenue and a favorable impact from F/X rates," the company said in a statement. "Membership growth benefited from continued, healthy retention in every region; globally and in the US, churn improved [YoY] and was better than forecast."

In Q4, Netflix management expects revenue of $13.4 billion, up 12% YoY. But they also project Q4 operating margin to slide over eight percentage points to 26% due to costs associated with its recent layoffs of close to 1,000 employees.

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

AUD/USD breaks 0.7000 as RBA inflation warning fuels two-week high

The Australian Dollar registers solid gains versus the Greenback, climbing above 0.7000 and hitting a two-week high of 0.7017 as broad US Dollar weakness pushes AUD/USD above 0.7000 amid a light economic docket in both Australia and the US.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Bitcoin resumes Nasdaq correlation as macro pressures threaten $82,500 support

Bitcoin's (BTC) correlation with the Nasdaq is rising again after last week's decline alongside tech stocks, even as macro pressures place the $82,500 support at risk. In a report on Tuesday, K33 Research highlighted that Bitcoin has resumed its correlation with the tech-heavy Nasdaq after last week's price movements.

SpaceX's earnings don't matter. What they unlock does

The Elon Musk-founded SpaceX reports third-quarter results after Tuesday's session. The figure that decides the next month for the stock isn't in them. On Thursday, the second full trading day after the release, up to 1.3 billion shares held by employees and early investors become eligible for sale.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.