NFLX Stock Collapses Overnight: Co-CEO Wants Netflix to Be Service’s Last Customer to ‘Never Cancel,’ Says Live Events ‘Generate New Members’

  • Sarandos said Netflix plans to build subscriber loyalty by regularly releasing original films and live events.

  • Sarandos said live sports attract new subscribers and increase advertising revenue.

  • Netflix beat third-quarter earnings estimates with $0.87 per share on revenue of $12.9 billion, but issued a weak outlook for the fourth quarter.

Shares of Netflix Inc. (NFLX) fell overnight as investors weighed slowing revenue growth against co-CEO Ted Sarandos’ strategy to retain subscribers and attract new viewers.

Sarandos emphasized that exclusive programming and live sports are key tools in making Netflix a vital part of consumers’ entertainment budgets.

Find out what over 10 million investors are talking about. Get the Stocktwits Daily Rip for what retailers are watching right now, delivered to your inbox for free

Netflix stock traded down more than 5% overnight Tuesday and is on track for a weekly loss.

Original content remains at the heart of Netflix’s strategy

Speaking on the fiscal third quarter (Q3) 2026 analyst call, Sarandos highlighted a steady stream of original productions and exclusive live programming.

Netflix wants to maintain a consistent release schedule, providing subscribers with new content to watch throughout the year. Sarandos said the company must deliver both quality and volume to meet audience expectations in an increasingly crowded streaming market.

“We want to be the go-to entertainment service, the first that members search for a great series or movie and the last service that they would cancel,” Sarandos said.

“Now the anchor of this strategy is Netflix Originals, differentiated, exclusive, ambitious, professionally produced series, films and live events. We have now oriented the market to expect something big and new to watch every week, so we must always guarantee quality and quantity.”

Live Events Help Drive Viewers for Netflix

Sarandos pointed to major sporting events, including the Canelo-Crawford boxing match and NFL and MLB programming, as ways to attract attention amid the abundance of entertainment choices.

“And they stand out. They attract new members. They add fuel to our advertising revenue. They appeal to our existing members and, overall, they just improve the value of Netflix.”

The company is also expanding its catalog through partnerships with external entertainment providers. Deals involving Sony (SONY), Disney (DIS), Universal and other studios complement Netflix’s original productions.

“All of this being said, it is very important to remember that approximately 95% of our expenses and almost all of our revenues are focused on this core business where we see a long runway for future growth,” Sarandos added.

Slowing revenue growth puts pressure on Netflix

Netflix reported third-quarter earnings per share of $0.87, beating Wall Street’s estimate of $0.82, according to Fiscal.ai. Revenue came in at $12.9 billion, in line with expectations, but the company gave a weaker sales outlook for the fourth quarter. Netflix is ​​grappling with slowing revenue growth for the fourth straight quarter as it faces growing competition and strives to attract more viewers and expand its advertising business.

To get its operations back in order, Netflix cut about 1,000 jobs last week.

“The company needs a mandate that forces the entire organization to ask tough questions about where we can be more effective, where can we make tough decisions about where we can reduce or redirect our investments,” said co-CEO Gregory Peters.

NFLX Stock: Retail Position

On Stocktwits, retail sentiment for NFLX moved from “neutral” to “extremely bullish.”

One user said: “I have started a position. AI will reduce its cost. The product will be brought to market faster. The return on investment will be extremely favorable. They have a huge presence in the market.”

Another user said: “This stock will be priced between $150-$200 by the end of 2027, and when the rotation out of AI takes place you will see everything move back towards CMG, MCD, NFLX and other high quality companies.”

NFLX stock is down 26% year to date.

Read next: FAA clears Boeing’s MAX 10 after long wait, but BA traders say deliveries will boost stock

For updates and corrections, email newsroom(at)stocktwits(dot)com.

Shivani Kumaresan has no position in any of the stocks mentioned in this article. Content from the StockTwits News Team is for informational purposes only and is not intended as investment advice. To learn more, see our editorial policy. This article was originally published on StockTwits.

Related:

Gn bussni

Scroll to Top