Netflix posts higher Q3 profit but revenue growth worries pull shares lower

Netflix reported a third-quarter profit that surpassed Wall Street expectations, yet the company's shares fell following the announcement. The drop in share price was driven by investor concerns over slowing revenue growth after the streaming platform lowered its ad sales guidance.

The financial update follows Netflix's disclosure of layoff plans made the previous week. On Tuesday, the company reported earnings of $3.66 billion as it navigates shifting financial targets and market pressures.