John Conca and Kenneth Suh break down Netflix’s (NFLX) earnings as slowing U.S. engagement, weaker ad revenue and softer guidance overshadow strong margins and cash flow. They discuss competition for viewing time from YouTube and TikTok, and why Netflix may need bigger content swings through licensing deals, live events and sports. Despite concerns that slowing growth could signal a structural challenge, they still see Netflix as a healthy business with opportunities to reaccelerate engagement.