Netflix has seen a strong quarter with subscribers topping 325 million but shares are down 5% in after hours trading.
Recently, the streaming service broadcast a much hyped fight between professional boxer and former world champion Anthony Joshua and YouTuber Jake Paul.
The fight was said to have signalled a new epoch for Netflix and positively impacted the business.
To find out more about Netflix’s current performance 9amBusiness spoke to Matt Britzman, senior equity analyst, Hargreaves Lansdown.
He comments: “Netflix shares are down about 5% in after‑hours trading, which might look harsh at first glance, given the quarter itself was solid. Revenues, margins and profits all beat expectations, but markets don’t dwell on the rear‑view mirror for long. The issue was guidance, and specifically margins, which are set to come under pressure in 2026 as costs ramp. Content spend is doing the damage, a timely reminder that even streaming’s gold standard can’t afford to take its foot off the creative gas.
“Looking further out, price increases lined up for 2026 look like the right call as subscriber growth cools. The 325 million subscriber milestone is an eye‑catcher, but it was broadly expected and didn’t move the dial. While 2025 told a story of strong execution, 2026 is shaping up as a year of higher costs and tougher optics. Add in the lingering uncertainty around the Warner Bros. deal, not to mention the mammoth price tag, and shares may struggle to regain momentum in the near term.”
Matt continues: “The AJ fight alongside the Christmas Day NFL game delivered above-average subscriber growth, but don’t expect this to be a major dial mover. Viewers are seeking new content, and live sports offer a fresh avenue for Netflix to explore. It’s going to be selective, though. Competition for live events is hot, and it’s not always the best commercial decision to go head-to-head in bidding wars for this type of content.”
According to data from Antenna 1.43 million new customers signed up to Netflix to watch the fight and the average length of a subscriber is nine months.