Netflix shares dropped more than 10% after the streaming giant projected slower revenue growth and announced it would further reduce the amount of viewership data shared with investors, raising concerns that the company’s strongest growth phase may be coming to an end.

The sell-off erased approximately $35 billion in market value, reflecting growing uncertainty over Netflix’s future performance as competition across the streaming industry continues to intensify.

A major factor behind the market reaction was Netflix’s decision to reduce the frequency of its viewing-hours reports. Beginning in 2027, the company will publish engagement data only once per year instead of twice annually. The move follows last year’s decision to stop regularly reporting subscriber numbers, leaving investors with fewer metrics to evaluate the platform’s performance.

Analysts said the timing of the announcement amplified investor concerns. Reducing operational transparency while simultaneously forecasting weaker financial results led some market participants to question whether user engagement is beginning to slow.

Netflix also faces a more challenging content pipeline compared with last year. In 2025, blockbuster releases such as the final seasons of Stranger Things and Squid Game helped drive strong subscriber engagement. This year’s programming schedule is viewed as less compelling, potentially making it more difficult to sustain viewing hours and attract new subscribers.

At the same time, Netflix continues to face increasing competition from both traditional media companies and digital platforms such as YouTube. While the company has invested heavily in its advertising-supported subscription tier as a long-term growth engine, adoption has progressed more slowly than many investors had expected.

Despite the recent decline, Netflix still trades at a significant premium compared with other major entertainment companies. Investors have historically rewarded the company for its leadership in global streaming, pricing the stock at substantially higher earnings multiples than competitors including Disney and Comcast.

Following the earnings update, numerous analysts lowered their price targets. However, many still maintain optimistic long-term expectations, arguing that Netflix’s global scale, strong brand recognition, and continued investment in original content position it well for future growth despite near-term challenges.

The latest market reaction illustrates how investor expectations have evolved. As Netflix matures from a high-growth disruptor into a global entertainment leader, financial markets are placing greater emphasis on sustainable revenue growth, profitability, and transparent reporting rather than subscriber expansion alone.