Netflix's Stock Plummets as Revenue Growth and Advertising Stagnate

Netflix's stock dropped over 9% after its quarterly earnings report left Wall Street uncertain about key revenue drivers. The report lacked details on the ad-supported plan and password sharing crackdown, which were expected to drive growth. Netflix's second-quarter revenue fell short of expectations, and its average revenue per membership showed weakness. The company removed its cheapest, no-ads plan to encourage customers to opt for the cheaper ad plan. Netflix executives did not provide specifics on the ad-supported tier. With uncertainty around revenue-driving initiatives, it is difficult to project Netflix's revenue in the next two years, making the future murky. However, Netflix added 5.9 million customers and forecasts third-quarter revenue of $8.5 billion.