Why Netflix’s AI push isn’t reviving the stock

Netflix shares dropped 7.7 percent to $68.61 after the company reported mixed second-quarter results and issued disappointing guidance. The stock has fallen 27 percent year-to-date, significantly underperforming the S&P 500 which is up 9.3 percent. Management's push on generative AI usage across around 300 titles failed to offset investor concerns about user engagement, rising competition, and the company's decision to cut its engagement disclosure report from twice a year to annually starting 2027.