Netflix, struggling with growth and undergoing restructuring, struggles to convince Wall Street despite rising profits

Netflix reported its sales figures on October 20, meeting expectations but lowering its advertising revenue projections. Following the announcement, its stock fell nearly 5%, having lost a quarter of its value since January. The company noted a significant concern among investors regarding viewer engagement, as YouTube now captures nearly twice the screen time on TVs compared to Netflix. Netflix anticipates around $2.7 billion in advertising revenue by 2026, down from previous estimates. The company also announced around 1,000 job cuts, which will cost approximately $160 million in the fourth quarter. Despite these challenges, Netflix continues to focus on original content and partnerships to drive viewership.