Netflix Stock Dips After Q2 Earnings Report

Netflix reported strong Q2 2024 earnings, surpassing both revenue and subscriber growth expectations. The company added over 8 million subscribers, bringing the total to 277.65 million, driven by a crackdown on password sharing and a robust content lineup. Revenue for the quarter reached $9.56 billion, a 16.8% increase year-over-year. Despite these gains, Netflix's guidance for Q3 2024 revenue was softer than anticipated at $9.73 billion, leading to a 2-6% drop in after-hours trading. The company is phasing out its ad-free basic plan in the U.S. and France to boost its ad-supported tier, which grew 34% in the quarter. Netflix's stock has surged 32% year-to-date but showed signs of cooling momentum after the latest earnings release.