Netflix shares traded lower Monday, down 2.14% to $76.49 at publication, as investor focus stayed on the company's softer third-quarter outlook despite a brief boost last week from Pershing Square Capital Management's newly disclosed stake. Bill Ackman re-entered the stock with 3.15 million shares, representing 4.9% of Pershing Square's portfolio, after exiting in 2022 with a $400 million loss. Pershing Square said Netflix has "since effectively won the streaming wars" and that its "current valuation multiple represents a substantial discount." The pressure on the shares followed Netflix's July 16 second-quarter report, which showed revenue of $12.56 billion, up 13% year over year but slightly below the $12.59 billion Street estimate, while earnings per share of 80 cents topped the 79-cent consensus. Netflix projected third-quarter revenue of $12.86 billion and earnings of 82 cents per share, both below Wall Street forecasts, and narrowed its full-year revenue outlook to $51 billion-$51.40 billion from $50.70 billion-$51.70 billion. Regional revenue rose across UCAN, EMEA, LATAM and APAC, while ad-related revenue remains on track to exceed $3 billion in 2026. Technically, the stock is trading above its 20-day and 50-day SMA (simple moving average), but remains below its 100-day and 200-day SMA, a setup that can signal a short-term rebound within a broader downtrend.