Netflix shares drop on slowing engagement, revenue growth

SAN FRANCISCO, United States (AFP)—Netflix stock dropped more than five per cent Tuesday afternoon after its quarterly earnings release failed to assuage investor concerns about a slowdown in 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 the company measures engagement, and added 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 streamers and forms of entertainment including gaming and sports.