Netflix shares were down nearly 6% in a Reuters after-hours snapshot following its Oct. 20 earnings release, less than the 9% move options had priced in beforehand.
CNBC reported the options estimate ahead of the results. It indicated the possible size of a share-price move, regardless of direction. Netflix shares had traded below $69 shortly before the company issued its third-quarter figures; Reuters later put the after-hours price at $64.66.
Options prices last pointed to a larger pre-earnings swing for Netflix in the third quarter of 2022: 11%, followed by a 13% rise in the shares after that report.
Netflix reported third-quarter revenue of $12.87 billion and net income of $3.66 billion, both higher than a year earlier. The company also reduced its 2026 advertising revenue forecast from about $3 billion to about $2.7 billion, citing a slightly slower-than-expected rollout of some ad product capabilities.
