Netflix issues weak fourth-quarter forecast, shares drop

By Lisa Richwine LOS ANGELES, Oct 20 (Reuters) Netflix issued a weaker-than-expected forecast for fourth-quarter profit on Tuesday, days after the streaming pioneer laid off 6% of its workforce and replaced two of its top programming executives. Shares of Netflix fell more than 5% to $68.69 ​in after-hours trading. Third-quarter revenue rose 11.8% to $12.87 billion, in line with Wall Street forecasts, ‌but the lowest rate of increase in nearly three years. The company forecast fourth-quarter net income of $2.79 billion and EPS of 67 cents, below the average analyst forecast of $3.07 billion and 73 cents. Netflix reduced its advertising forecast for 2026 to roughly $2.7 billion, down from about $3 billion. Some ad product capabilities rolled out slightly slower than expected, executives said ‌in ​their quarterly letter to shareholders. The company that shook up Hollywood when ⁠it started streaming TV shows and ⁠movies two decades ago is now competing with a surge in viewership on YouT