Netflix runs a subscription streaming service for TV series, films, documentaries, games and live events, watched by members around the world. Its catalog mixes licensed titles with originals it commissions in dozens of countries, from Korean dramas like Squid Game to stand-up specials and live sports. Members watch on smart TVs, phones, computers and game consoles, and a recommendation system shapes what each profile sees first. Netflix earns most of its revenue from monthly membership fees, including a lower-priced plan with ads sold through its own advertising technology. Netflix was founded in 1997 as a DVD-by-mail rental service and is headquartered in Los Gatos, California.
Company Size
10,001+
Company Stage
IPO
Headquarters
Los Gatos, California
Founded
1997
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Free lunches
Up to 12 months' maternity and paternity leave
Unlimited vacation days, within reason
Open working hours (at the California office)
Health, vision, and dental insurance
Employee stock purchase plan
Mobile phone discounts
Netflix grew revenue faster than Disney, Amazon, Comcast, and Apple over the past twelve months, yet its shares fell 42.2%, the steepest drop among the five. The stock trades at 21.6 times trailing earnings, close to Disney's 21.9. Netflix's revenue rose 16.0%, against 4.6% at Disney. Its operating margin was 29.7%, versus 15.2% at Disney. Only Apple has a wider margin. Quarterly growth has slowed, from 16.2% in Q1 2026 to 13.4% in Q2 2026. Netflix guided to 12.0% for Q3 2026 and a 33.2% operating margin. It expects $3.00 billion of ads revenue out of $51.20 billion in total 2026 revenue. Results are due October 20, 2026.
Netflix is cutting about 1,000 jobs, roughly 6% of its workforce, in a restructuring announced Wednesday. The cuts fall largely on its product, technology, legal, and human resources teams. The company has plenty of money but is growing more slowly than leaders and shareholders want. Its stock is down 22% this year and 42% over 12 months, and in February it lost a bidding war for Warner Bros. Discovery. Netflix last laid off a third of its staff in 2001, an experience that led to its "talent density" idea and "keeper test." Co-chief executive officers Ted Sarandos and Greg Peters said the cuts reflect discipline about priorities, adding that the business "is strong and growing." Revenue reached almost $25 billion in the first half of 2026, up 15% year on year.
More than 25% of S&P 500 stocks are down 40% or more from their highs, even with the index near record levels, as of October 8, 2026. The Motley Fool sees that as a chance to hunt for bargains in tech. It names four picks. Netflix trades at about 18.5 times 2027 analyst earnings estimates, and advertising should drive its growth. Oracle has a $664 billion backlog in cloud infrastructure, but carries heavy debt and burns cash. ServiceNow, hit by the 2026 software sell-off, trades at 7.5 times forward sales as it pushes into agentic AI. AppLovin trades at 13 times 2027 earnings estimates. Its revenue rose 53% last quarter to $1.9 billion.
Netflix will lay off roughly 6% of its workforce, mainly in product, tech, HR, and legal, according to a memo obtained by CNBC. Rich Greenfield, co-founder of LightShed Partners, discussed the cuts on CNBC's "Power Lunch." He said Netflix needs a breakout hit. He also talked about Disney and Meta.
Netflix is laying off 6% of its workforce, but the cuts do little to fix its bigger problem: slowing growth against free video platforms such as YouTube, Instagram, and TikTok. Reports show subscriber and revenue growth is slowing, and existing users are less engaged. Netflix says engagement is fine, yet it plans to share less audience data. Its earlier fixes, including ads and live sports, are already in use, and video games have produced little. Netflix stock is down 43% over the last year, partly because investors disliked its failed pursuit of HBO and Warner Bros. Shares did not move after the layoff news.