Netflix shares fall as weak dollar-driven forecast fails to impress
Expectations were running high for the streaming giant, after its shares nearly doubled in value in the past year and viewers binged on content such as the final season of South Korean survival drama "Squid Game" in the second quarter.
But executives said much of the increase in the annual forecast was driven by weakness in the U.S. dollar, now predicting revenue of between $44.8 billion and $45.2 billion, up from $43.5 billion to $44.5 billion previously.
"When your shares are already binge-watched to perfection, the earnings beat needed to be stronger to satisfy expectations," said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
"Instead, some sold on the good news and maybe questioned whether the positive FX effect will be there a few quarters down the road."
A crackdown on password-sharing, more sports content and its ad-supported tier helped Netflix draw tens of millions of new viewers in 2024. But the company stopped reporting subscriber numbers earlier this year, shifting focus to metrics like revenue and profit, a move that has raised concerns about growth.
The streaming giant, whose $517-billion market value is more than the combined worth of Disney, Comcast and Warner Bros Discovery, posted quarterly earnings per share of $7.19, beating estimates of $7.08, according to data compiled by LSEG.
"A strong content slate in the second half of the year and growing traction for its advertising efforts could help support continued revenue gains in the third quarter and beyond," said Seth Shafer, principal analyst at S&P Global Market Intelligence Kagan.
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Commentary: Why we need to be wary of AI as an enabler of terrorism
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The Internal Security Department (ISD) said that new technology like AI and 3D printing have thus far not been proven to have been used in any terror attack plot in Singapore, but they have featured in the self-radicalisation of local youths. A 17-year-old Islamic State supporter detained in September 2024, for example had used an AI chatbot to generate a bai'ah or pledge of allegiance to ISIS, as well as a declaration of armed jihad against non-Muslims to inspire other Muslims in Singapore to engage in armed violence. In another case, a 17-year-old supporter of far-right extremist ideologies detained in March this year had searched for instructions on an AI chatbot on how to produce ammunition, and considered 3D-printing his own firearms as part of his plans to conduct attacks locally. ISD said that, given the increased sophistication and ease of access to these and other emerging technologies, potential terror activities and plots in the future can be expected to feature such technologies going forward. EVOLVING TACTICS AND TECHNIQUES There are a number of ways that new and evolving technology like AI can be harnessed by terrorist organisations to advance their aims. First, in accelerating radicalisation and recruitment. AI has been used to generate disinformation at a scale and speed much faster than what could be achieved by manual means alone. Many extremists misappropriate, misinterpret or manipulate religious prophecies or social narratives to suit their ideologies and win more supporters to their cause. In that vein, AI would be able to make such efforts, which bear significant similarities to disinformation operations, more effective and efficient. AI-powered chatbots tap into our human need for companionship, but have also been shown to be easily manipulated. Isolated individuals may find seemingly empathetic connections and be nudged toward extremist ideology. Another risk is how AI could be deployed by terror organisations in ever more innovative ways to create chaos and confusion. A recent investigation by the BBC unearthed evidence that identities of British public sector workers had been cloned using AI by a Russian-linked disinformation campaign. For example, an emergency medical adviser in the UK had his voice faked in a video campaign spreading fear ahead of Poland's presidential election earlier this year. In the recent Israel-Iran conflict, AI-driven disinformation such as fake videos and images showing the purported prowess and success of both sides were shared widely in the online space, with the aim of bolstering support for each side's campaign. Third, AI could be used by radicalised individuals to generate and suggest plans and strategies to conduct terror attacks, which would be especially appealing to younger, more vulnerable individuals who may not have been exposed to formal training or direct contact with terror organisations. Combined with existing trends such as using AI to produce deepfake videos, and the other tactics detailed in the report, these present a complex and complicated environment that can only increase the chances of terrorism threats permeating across the world. WHAT CAN BE DONE While the report makes clear that there is currently no specific intelligence of an imminent terrorist attack against Singapore, it is important to not take such relative peace for granted. All eight Singaporeans dealt with under the country's Internal Security Act since last July were self-radicalised by extremist materials they found online. ISD said that such platforms have accelerated the time taken between individuals' first encounter with terrorist and radical elements, and their subscription to violent extremist ideologies. Statistics show that the time taken for self-radicalisation for cases detected in Singapore has essentially halved from 24 months prior to 2015, to an average of 12 months between 2021 and 2025. Some cases took mere weeks. In particular, the vulnerability of the youth to radicalisation remains a pressing concern. Much of ISD's prescribed efforts to counter the risk of terrorism and violent extremism are focused on enhancing counter-terrorism capabilities, beefing up border security, and working with social and education agencies to address the threat early. However, given the potential for emerging and evolving technologies such as AI to be used by terrorist organisations to enable and enhance their efforts and operations, equal emphasis should be placed on identifying such threats as early as possible. This will require close collaboration between the government and security agencies and technology counterparts in the private sector, while also ensuring the people are educated and kept up to date on such threats as soon as they are detected, whether at home or abroad.
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Kugler Resigns From Fed, Opening Door to Trump Appointment
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