What triggered Netflix's sharp post-earnings selloff?

Netflix reported Q2 revenue of $12.56 billion, up 13% year-on-year, narrowly missing Wall Street estimates, while diluted EPS of $0.80 came in slightly ahead of expectations. The stock sold off sharply after weak Q3 guidance of $12.86 billion in revenue and $0.82 EPS, both below forecasts, signalling a slowdown in growth momentum to around 12%. Investor concerns were further amplified by Netflix's decision to publish its engagement report only once a year starting 2027 instead of twice annually, seen as reduced transparency amid intensifying competition from YouTube, Disney+ and TikTok.