What triggered Netflix's sharp post-earnings selloff?

Netflix shares fell nearly 9% in after-hours trading after the streaming giant issued weaker-than-expected Q3 guidance, with projected revenue of $12.86 billion and EPS of $0.82, both below analyst forecasts. Q2 revenue of $12.56 billion grew 13% year-on-year but narrowly missed Wall Street estimates, while diluted EPS of $0.80 slightly beat expectations. Investors also flagged concerns over the company reducing the frequency of its engagement data disclosures from twice yearly to once annually starting 2027.