Netflix stock plunged 9% on Friday morning to $67.74 a share, after the streamer’s second quarter earnings report renewed concerns among investors and analysts about the streamer’s future growth.
The Los Gatos-based company on Thursday narrowed its 2026 forecast to $51 billion to $51.4 billion from $50.7 billion to $51.7 billion, causing equity analysts to cut their estimates. The stock reached a new 52-week low on Friday and is down 49% from a year ago.
“This outlook likely reinforces investor concerns,” wrote analysts from Guggenheim Securities in a research note on Friday, which has a “buy” rating on the stock.
Netflix did not immediately respond to a request for comment on its declining stock price.
Investors have been skittish about the amount of time people spend on the streaming platform. Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as YouTube has gained market share, according to Nielsen data.
Investors are concerned that if people spend less time watching Netflix, it could cause people to cancel their subscriptions and make it more challenging for Netflix to raise prices in markets like the U.S.
Netflix said engagement is healthy on its platform and its programs continue to draw large audiences with popular shows like crime drama series “I Will Find You.”
Netflix said subscribers watched more than 97 billion hours on the streaming service in the first half of the year, up 2% from a year ago.
“We are increasingly concerned that younger generations are less interested in long form content as their time migrates to ‘free’ social media platforms,” wrote Jeffrey Wlodarczak, CEO of Pivotal Research Group in a report on Friday, who has a hold recommendation on Netflix stock. “We believe this will result in slower subscriber growth and attempts by the company to offset this via more aggressive price increases and investment in content.”
Netflix executives in a Thursday earnings presentation emphasized that measuring engagement at the company goes beyond hours spent watching the streaming service.
“There is not a linear relationship between view hours and revenue and profit because all hours are not created equal,” said Greg Peters, Netflix co-CEO on an earnings presentation on Thursday. “All hours don’t provide the same kind of value to the business.”
The streamer said it plans to allocate just over 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said, even though it makes up roughly 1% of overall watch time this year.
The company is also diversifying the content it offers on its platform, adding live sports games and video podcasts, in addition its large library of TV shows and movies.
Netflix revenue rose 13% to $12.6 billion in the second quarter. Net income was $3.4 billion, up 9% from a year ago.
The company said its advertising business is on track to reach $3 billion in revenue this year, double the amount in 2025.
Netflix on Thursday reported higher revenues and profit in the second quarter as it sought to assure investors about its growth prospects.
The streaming giant reported revenue of $12.6 billion in the second quarter, up 13% from a year ago. Net income during the period rose 9% to $3.4 billion.
Netflix said it expects revenue to grow 12% in the third quarter, but lowered its 2026 revenue forecast to $51 billion from $51.4 billion.
The results were roughly in line with what analysts had predicted and were driven by recent price increase and growth in advertising revenue. The latter is expected to reach $3 billion this year, the company said.
In a presentation with analysts, Netflix executives touted global expansion plans.
“We’re entertaining an audience approaching a billion people with still lots of room to grow into our addressable market on every measure,” said Spencer Neumann, Netflix’s chief financial officer, in the earnings presentation. “We believe we’ve got lots and lots of runway for solid growth ahead of us.”
Those comments appeared intended to assuage investors who’ve grown concerned that people could be spending less time on the streaming service as rivals like YouTube gain market share.
Netflix’s share of TV viewing time in the U.S. has steadily declined in recent months as rivals have gained market share, according to Nielsen data.
The streamer represented 7.8% of all TV viewing in the U.S. in April — the lowest percentage since May 2025. It was 7.5% in April 2025, Nielsen said.
By comparison, YouTube has seen its share of the streaming audience grow. YouTube’s TV viewing share in April rose to 13.4%, up from 12.4% a year earlier, Nielsen said.
Some investors fear that if viewership is down, subscribers could cancel the service, which would negatively affect the platform’s growing advertising business. It could also undercut Netflix’s ability to raise prices in the U.S. and other countries.
Those worries have caused Netflix’s stock price to plummet 41% in the last year. The stock closed on Thursday at $74.35 a share, up 1%. In after hours trading, the stock fell 8%.
“The engagement elephant continues to rear its head and investors are on edge that an earlier price hike in a seasonally tough period and lighter content slate could have driven more churn than usual,” wrote Morgan Stanley Research analysts in a research note.
On Thursday, Netflix said in a letter to shareholders it has a sophisticated understanding of its consumers and “we know not all hours are equal” and that engagement on its platform is “healthy.”
“The entertainment industry remains dynamic and competitive,” Netflix told shareholders. “We aim to stay ahead by executing against our three areas of focus: delivering more entertainment value, leveraging technology to improve every aspect of our service, and improving monetization.”
The Los Gatos-based company said it plans to allocate more than 5% of its content spend on live programming this year. Live content has been a key driver for subscriptions, accounting for six of the top 10 new member sign-up days over the last five years, the company said.
In the first half of 2026, Netflix said members watched more than 97 billion hours, up 2% from a year ago. Among the most popular shows: the crime thriller “I Will Find You,” which had 87 million views; and the romantic comedy film “Voicemails for Isabelle,” which garnered 71 million views.
Netflix has been adding new types of content to its platform, including video podcasts to help increase engagement with subscribers during the day.
As part of the diversification efforts, the platform has expanded its portfolio of live programming over the years, including adding NFL games and streaming Major League Baseball’s opening day game.
The jailing of one of Indonesia’s most influential entrepreneurs in a controversial corruption case has raised fears of damage to investor confidence in Southeast Asia’s largest economy.
Nadiem Makarim, the cofounder of the popular super-app Gojek, was last month sentenced to 10 years in prison for allegedly abusing his authority while serving as the country’s education minister.
Recommended Stories
list of 4 itemsend of list
Makarim was found guilty of giving favourable treatment to Google, an early investor in Gojek, when procuring Chromebook laptops for schoolchildren during the COVID-19 pandemic.
Prosecutors argued that Makarim, who served as former Indonesian President Joko Widodo’s education minister from 2019 to 2024, inflicted state losses of $120m, alleging that he should have been aware the laptops would not work in remote areas with poor internet access.
Critics of the prosecution have argued that the case against Makarim lacks evidence and that the startup founder-turned-politician is the latest victim of a campaign of political retribution being waged by the administration of Indonesian President Prabowo Subianto.
Nicky Fahrizal, a researcher of politics and social change at the Centre for Strategic and International Studies (CSIS) in Jakarta, said foreign investors will inevitably think twice before committing capital to Indonesia following the verdict.
“The Nadiem case, along with a string of similar incidents, has served as a warning signal to investors,” Fahrizal told Al Jazeera.
“For them, non-economic factors, such as legal certainty and the quality of the judicial system, are absolute prerequisites.”
Nadiem Makarim gestures after being sentenced in a laptop procurement corruption case at the Indonesian Court for Corruption Crimes in Jakarta, on June 30, 2026 [Tatan Syuflana/AP]
Makarim was found guilty by a panel of five judges on June 30, following charges related to the procurement of more than 1 million laptops intended for use in schools in remote and impoverished areas.
At the trial held at the Indonesian Court for Corruption Crimes in Jakarta, prosecutors alleged that Makarim deliberately tailored the tender specifications to favour Google, which invested in Aplikasi Karya Anak Bangsa (AKAB), Gojek’s then-parent company.
Scrutiny of the tender process first arose among the public after it emerged that the Chromebooks often did not work in remote areas, raising questions about how Google was chosen in the first place.
“Choosing a device that relies on an internet connection amid uneven infrastructure… demonstrates a mismatch with needs…” Judge Sunoto said during the sentencing.
Following the verdict, prosecutor Corneles Geeb Paulus hailed the outcome as a victory for “the schoolchildren whose rights were taken away and who were deprived of equitable access to digital education across Indonesia”.
Google has denied providing or offering authorities any inducements to win the tender.
The California-based tech giant, which has a market value of more than $4 trillion, was not indicted in the case.
“From a legal standpoint, authorities seem to have hit a wall in their efforts to secure sufficient evidence and establish the necessary criminal nexus to prosecute the corporation,” the CSIS’s Fahrizal said.
“From a political perspective, Google is a tech giant with immense business influence.”
Taking action against Google could have jeopardised the government’s ongoing digitalisation efforts, Fahrizal added, describing the company as “too big to fail” within the digital sector.
Trissia Wijaya, an Indonesian-born research fellow at the University of Melbourne’s Asia Institute, said Nadiem’s prosecution, coupled with the uncertainty of the business environment under Prabowo, would inevitably erode market confidence.
“Regardless of whether Nadiem is actually guilty or not, he is a symbol of startups and market optimism in Indonesia, especially in the mid-2010s,” Wijaya told Al Jazeera.
“When Gojek started booming and gaining traction, Indonesia was one of the main target countries for global investors, both from the US and China, to invest in the fintech industry,” Wijaya added, describing Indonesia’s business environment as being at a “critical juncture.”
Indonesian President Prabowo Subianto gestures during a joint news conference with Singapore’s Prime Minister Lawrence Wong at the Merdeka Palace in Jakarta, Indonesia, on July 6, 2026 [Willy Kurniawan/Reuters]
Since taking office in 2024, Prabowo has faced criticism over his handling of the economy, including high levels of spending on public initiatives, such as his signature free lunch programme, which is expected to cost about $15bn this year.
In June, the Indonesian rupiah hit an all-time low against the US dollar, a nadir economic analysts partly attributed to investors’ scepticism about Prabowo’s populist economic policies.
For his part, Prabowo has denied that he is anti-business, while emphasising that Indonesia must uphold the rule of law.
“Some have claimed that I dislike foreign investors and will drive them away, but that is not the case. I have met many investors who are planning to enter the market,” Prabowo told a conference for young entrepreneurs in the city of Lampung last month.
“The government must create a favorable environment for entrepreneurs, including the enforcement of the law. If the law is not enforced, what ensues is the law of the jungle… law based on power, and in the end, that is not good for any of us.”
‘Credibility’ of government policies
Siwage Dharma Negara, a co-coordinator of the Indonesia studies programme at the ISEAS-Yusof Ishak Institute in Singapore, said Indonesia’s reputation as an investment destination had already been in decline before the Makarim verdict.
“Investors are unsure about the credibility of government policies, and they are unsure about the credibility of institutions, whether executive, legislative, or judicial in Indonesia,” Negara told Al Jazeera.
“Nadiem’s case is only one factor that has damaged foreign investor confidence. But there are many other factors that contribute, including government policies that are increasingly less pro-market.”
Teguh Yudo Wicaksono, an economics lecturer at Universitas Islam Indonesia in Yogyakarta, said that although he does not expect the case to have much of an impact on foreign investment, it could deter Indonesian talent based overseas from returning home.
“This could result in a brain drain and Indonesia losing talent,” Wicaksono told Al Jazeera.
Makarim attended Harvard Business School and Brown University in the United States before returning to Indonesia in 2006 and cofounding Gojek four years later.
In 2019, Gojek, which began as a ride-hailing business before evolving into a super-app that also offers food delivery and digital payment services, became the first Indonesian tech company to achieve a valuation of more than $10bn.
Drivers wear Gojek helmets during the Go-Food festival in Jakarta, Indonesia, on October 27, 2018 [Beawiharta/Reuters]
Not all observers see the Makarim case as a negative for investor sentiment.
I Gusti Ngurah Bayu Pradana, an expert in business law at the Bali-based Malekat Hukum International Law Firm, said the enforcement of corruption law should be seen as a “positive signal for legal certainty and governance quality in a country, rather than a negative one”.
“Experienced foreign investors generally understand that the greatest risk in investing is not the existence of law enforcement, but rather, legal uncertainty, or a situation in which the rules of the game are unclear, legal processes lack transparency, or enforcement is selective and unpredictable,” Pradana told Al Jazeera.
While Makarim was found guilty of abusing authority and causing state losses, he was acquitted of an additional charge of directly seeking to enrich himself, and he was handed a lower sentence than the 18 years sought by the prosecution.
While reading the verdict, Judge Andi Saputra also presented a dissenting opinion, saying that he found “no evidence of malicious intent or malicious acts” and scant “causal connection or indication between the conflict of interest and the corporate crime”.
The Malekat Hukum law firm’s Pradana pointed to the judge’s dissenting view as evidence of the Indonesian judiciary’s independence and rigorous fact-finding.
“For foreign investors considering Indonesia as an investment destination, the takeaway from this case should not be alarm, but rather confidence that Indonesia’s legal system functions and can hold anyone accountable equally before the law,” Pradana said.
“So long as investment contracts are clearly drafted, business processes are conducted transparently, and implementation complies fully with applicable laws and regulations, investment in Indonesia remains a safe and promising choice.”
A future that, he says, has always intrigued him – and perhaps not dissimilar to David Beckham.
Like Bale, the English icon was his nation’s footballing figurehead and could have had his pick of post playing jobs, before ending up a co-owner of MLS franchise Inter Miami as part of various business interests.
Was that route an influence?
“I think so; a lot of American athletes do that type of thing and I would read about it and listen to interviews about what they’ve done,” says Bale, whose old Real Madrid teammate Luka Modric has become a minority investor in Swansea City.
“A lot of players still go down the coaching route, management or even with younger players at academies.
“But you are seeing more players being a bit more business minded. Maybe because we’ve done so much on one side, this side becomes a new chapter, a new world.
“It always really interested me, but I didn’t really have the opportunity before being introduced to John.”
The John who could help Bale build it like Beckham is experienced US investor John Shulman, founder of private equity firm Juggernaut Capital.
The company is said to have $1bn in capital commitments and had already been investing in various sport businesses – from golf courses and volleyball to “thrill” sports – but sensed an opportunity, especially when it came to Europe and the UK.
Shulman says he wanted to bring on board “an elite, iconic athlete” to help launch a sports specific investment platform – Juggernaut Diversified Sports – ready to invest more than £500m.
And after an introduction – and, naturally, a round of golf – found one.
“There is only a small number of human beings on the planet who have done what Gareth has done,” Shulman says.
“We’re good investors, but what we lacked is the mindset, experience, drive and unique perch Gareth does.
“I mean, the guy has got it all. What he can do on the pitch, I’ve seen him do in the boardroom metaphorically. So I have nothing but excitement about [our plans], doing it at the right time and the right place and the right way.”
Oscar-winning director Martin Scorsese is joining the ranks of entertainment industry power players embracing generative AI.
Black Forest Labs, the German AI startup behind the text-to-image model Flux, announced Tuesday that Scorsese is joining the company as an advisor.
The company unveiled the collaboration on its website with a video of the auteur using Flux to storyboard scenes, which involves mocking up shots before filming.
“This conveys a cinematic intelligence,” he said in the video, discussing the program’s uses with Black Forest Labs co-founder and Chief Executive Robin Rombach and Creative Artists Agency co-founder Michael Ovitz. According to the New York Times, Ovitz, an investor in Black Forest Labs, helped bring Scorsese aboard, along with Rick Yorn, Scorsese’s talent manager, whose investment firm BroadLight Capital is also an investor.
In a statement, Scorsese emphasized the potential for AI to transform the storyboarding process.
“For 70 years, I’ve been creating my own storyboards. There’s always been this problem of how do you communicate what you see in your head to your cast and crew. There are some things you have to see and feel,” he said. “I’m interested in the intersection of technology and storytelling, and seeing how that can push the bounds of creativity to create deeper and richer experiences for audiences.”
Traditionally, storyboarding is done by hand or digital illustration through a collaboration between directors and storyboard artists.
Scorsese’s public espousal of this technology marks the latest shift in attitude about AI from powerful Hollywood creatives. Since generative AI became widely accessible in 2022, Hollywood has struggled to navigate its power to rapidly upend industry norms.
Scorsese is not the first decorated filmmaker to embrace AI. James Cameron, the Oscar-winning “Avatar” director, is on the board of directors for Stability AI, where Rombach worked before launching Black Forest Labs. In his keynote address at the AI on the Lot conference last week, director and screenwriter Paul Schrader expressed a mixture of admiration and caution toward the technology.
“AI does not create — it combines,” Shrader said. “If AI wants an idea, it has to go to where that idea already exists. Of course, you can make the argument that that’s all artists do anyway, and to a degree that’s a valid argument. But you still have to come up with something.”
Not everybody is on board with generative AI’s potential transformations. Guillermo del Toro and Seth Rogen spoke out against the technology at Cannes last month, and below-the-line wokers, screenwriters and actors have continued to express apprehension and even horror at the prospect of being replaced by generative AI.
Scorsese’s entry into the AI field might especially shock fans given his traditionalist approach to filmmaking. In 2019, he famously criticized Marvel movies, calling them “theme parks” and “not cinema.”
“It isn’t the cinema of human beings trying to convey emotional, psychological experiences to another human being,” he said in a 2019 interview with Empire Magazine.
Even if his filmmaking centers humanity, Scorsese’s partnership with Black Forest Labs demonstrates his willingness to incorporate non-human assistance.
“Remember, cinema is a young medium, only around 125 years old, so we have to be open to how it can evolve,” he said in the statement on Black Forest Labs’ website.
As many as a dozen letters — including one from the NBA — were submitted by the attorney for Aspiration Partners co-founder Joe Sanberg ahead of his sentencing Monday in an effort to persuade the judge to trim the 17 years prosecutors have requested for each of the two counts of fraud.
Sanberg pleaded guilty in October to the federal charges of conspiring to bilk investors out of $248 million for portraying the now-defunct Aspiration as a “socially-conscious and sustainable banking services and investment products” firm.
Another letter was also submitted, however, and it wasn’t intended to assist Sanberg.
Clippers owner Steve Ballmer’s attorney David N. Kelley of O’Melveny and Myers wrote that Ballmer was defrauded of a $60-million investment in Aspiration and that the harm to his reputation is “immeasurable.”
The five-page Victim Impact Statement concludes: “Mr. Ballmer’s losses are not measured solely, or even primarily, on a balance sheet. They are measured in the reputational damage that will take years to remediate, and in the chilling effect on future endeavors intended to do good at scale.
“We ask the court to impose a sentence that accounts for those harms, promotes respect for the law, and deters those who would seek to appropriate the reputations of others to advance fraudulent aims.”
The letter states that the Clippers lost out on a $300 million sponsorship agreement with Sanberg in exchange for the team to wear Aspiration jerseys patches. Also lost was about $20 million the Clippers paid for carbon offset purchases and the $60 million Ballmer invested in the company.
Ballmer, a former long-time CEO of Microsoft, accused Sanberg of targeting him for his well-known interest in environmental sustainability and exaggerating their relationship to convince others to invest in the fraudulent company. In the letter, Ballmer says he met Sanberg only once.
Ballmer was added in November as a defendant in an existing civil lawsuit against Sanberg and several others associated with Aspiration. Ballmer and the other defendants are accused by 11 investors in Aspiration of fraud and aiding and abetting fraud, with the plaintiffs seeking at least $50 million in damages.
The letter dismisses the allegations in the lawsuit as “nonsense,” stating Ballmer was added as a defendant because of his “visibility and resources,” and reiterates that Ballmer himself is a victim of fraud. The action has damaged his reputation, the letter states, “and has further linked Mr. Ballmer to Sanberg’s fraud in the eyes of the public.”
The letter to the court, however, makes no mention of the $28-million contract Clippers star Kawhi Leonard signed with Aspiration for endorsement and marketing work. Players are allowed to have separate endorsement and other business deals, but at issue is whether the Clippers participated in arranging the side deal beyond simply introducing Aspiration executives to Leonard.
Leonard has addressed the accusations only once, denying wrongdoing and saying, “I understand the full contract and services that I had to do. Like I said, I don’t deal with conspiracies or the click-bait analysts or journalism that’s going on.”
The arrangement could be considered circumventing the NBA salary cap, a serious violation of league rules. Ballmer steadfastly denies arranging the deal between Aspiration and Leonard, who by all accounts performed no duties for Aspiration.
The NBA is investigating the complicated relationships between Ballmer, Leonard and Aspiration. One of the letters submitted by Sanberg’s attorney to the judge is from the law firm conducting the probe, and it states that the disgraced executive provided documentation and information helpful to the NBA investigation during two in-person interviews.
“In all our dealings with Mr. Sanberg, both directly and through his counsel, he provided information that was consistent with our review of contemporaneous documents and other evidence,” wrote Dave Anders of Wachtell Lipton. “Mr. Sanberg’s cooperation substantially assisted our investigation, including our ability to develop a more complete understanding of key events.”
Eventually the ledger will include the results of the NBA investigation into the allegations against Ballmer and Leonard. And that finding might impact the reputation of both more than Sanberg’s fraudulent dealings.
It felt like the Olympics. Crowds cheering. The American flag standing tall above the bleachers. Trainers jumping with anticipation. A swimmer staring in disbelief at the clock after his final stroke. The Jumbotron announced: Kristian Gkolomeev — 20.89 seconds. A new world record in the 50-meter freestyle.
Well, kind of.
I’ve left out some details. There was only one swimmer. The crowd? Just doctors, trainers and filmmakers. This was not in an Olympic city nor an Olympic year, but in Greensboro, N.C., in 2025. And there were no iconic rings on the banners, just “Enhanced Games.”
Yes, Gkolomeev swam faster than César Cielo, the official record holder at the time (20.91 seconds). But he did it “enhanced” — a polite way to say that he used performance-enhancing drugs. At the Enhanced Games, doping isn’t punished. It’s required.
The concept, as described by the organization: “to create the definitive scientific, cultural and sporting movement that safely evolves mankind into a new superhumanity.”
Backed by investors such as Peter Thiel and Donald Trump Jr.’s 1789 Capital, the Enhanced Games embodies a techno-utopian ideal: athletes as canvases for chemical optimization, testing the limits of human health for a lot of money. Gkolomeev earned $1 million for his record.
Fans — and especially kids — mimic their idols. As risky as the drugs are for athletes at the Enhanced Games, with its “medical commission” to give the illusion of safety, the substances are even more dangerous when used by people without medical supervision.
The games also expose the economic neglect that drives athletes toward such competition. As Benjamin Proud, the British silver medalist who recently joined the Enhanced Games, put it: “It would have taken me 13 years of winning a World Championship title in order to win what I could win in one race at these games.”
Indeed, the Enhanced Games might look like an easy way out. Only nine swimmers worldwide received prize money and performance bonuses above $75,000 in 2025, according to World Aquatics.
Investors clearly hope to make money off the games as well. The organization is moving closer to becoming a publicly traded company. The economics are not mysterious.
But the Enhanced Games are not just another sporting event. They are an arena for biomedical experimentation and should be regulated as such. The games should face limits similar to those imposed on other high-risk industries, including age restrictions and strict advertising rules.
We already know how to govern legal, profitable activities that carry serious health risks.
In the United States, that means oversight from the Food and Drug Administration and the Federal Trade Commission — bodies that regulate drug protocols and police misleading commercial claims. A steroid-based competition should not be treated as a sport but as a medical experiment and a marketing stunt.
Regulations on pharmaceutical advertising offer a useful model for the Enhanced Games. Prescription drugs are advertised every night on television, but only under strict rules. They require fair balance (content must present benefits and risks with comparable prominence, readability and duration) and a “major statement” of risks (most serious risks must be spoken aloud and not obscured by visuals or music).
Right now, when you play Gkolomeev’s “world-record” video on YouTube, a medical-risk warning appears for barely five seconds — then vanishes. If a cholesterol drug must audibly warn viewers of stroke risk, why shouldn’t a steroid-based competition do the same?
Enhanced Games content should be accompanied by clear warnings of the risks of performance-enhancing drugs and be clearly labeled, age-gated and distributed as high-risk content more akin to pornography than to a boxing match.
Prohibition is not the answer. Trying to shut down these games only fuels a controversy-driven brand. Just recently, the Enhanced Games sued organizations such as World Aquatics and the World Anti-Doping Agency, alleging antitrust violations and that blocking athletes from participating at the Enhanced Games is illegal. As those organizations fight back, they will be seeking to protect the integrity of mainstream sports, but they will also inadvertently be promoting the Enhanced Games.
If we want kids to admire clean athletes rather than those using banned drugs, the Las Vegas launch must not reach the world as a Super Bowl would. The Enhanced Games should not be televised or allowed to stream online to minors. Otherwise, Las Vegas, in May, risks becoming an unregulated public-health experiment mislabeled as a sporting event.
Fabricio Ramos dos Santos is a lawyer, entrepreneur and sports investor.
