BUZZ - Netflix shares drop due to weak profit forecasts

October 21 - ** In pre-market trading on Wednesday, Netflix (NFLX.O) shares fell by 6% to $64.64 after the company released a fourth quarter earnings forecast (link) below expectations and lowered its full-year advertising revenue outlook.

** The company expects fourth quarter net income of $2.79 billion and earnings per share of $0.67, both below analysts' estimates of $3.07 billion and $0.73; it also cut its 2026 advertising revenue forecast to around $2.7 billion.

** Co-CEO Ted Sarandos said "we could have done better" and plans, following recent executive changes, to focus on the core business of producing quality TV shows and films.

** Netflix (NFLX) shares are down around 26.7% so far this year, while the Nasdaq Index .IXIC has risen 13.7% in the same period; the current share price is about 45% lower than the 52-week intraday high of $124.86.

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