Netflix, Intuitive Surgical Plunge Premarket on Disappointing Outlooks

Netflix and Intuitive Surgical shares tumbled in premarket trading Friday after the companies released corporate updates that failed to meet investor expectations, fueling a wider decline in U.S. stock futures and extending a selloff in the technology sector.

Key Corporate Updates

Streaming giant Netflix (NFLX) saw its shares fall 9.3% after its second-quarter results and forward-looking guidance raised concerns about growth. While the company reported earnings per share of $0.80, slightly ahead of forecasts, its revenue of $12.56 billion narrowly missed analyst expectations. Investors focused on a weaker-than-expected forecast for the third quarter, questioning the sustainability of its recent subscriber and revenue momentum.

Medical device maker Intuitive Surgical (ISRG) plunged more than 12% after its latest update. The company maintained its full-year procedure growth forecast for its da Vinci robotic surgery systems but cautioned that changes to certain U.S. insurance plans could negatively impact demand. This conservative outlook disappointed investors who had anticipated a more robust forecast.

Broader Market Reaction

The negative corporate news weighed heavily on the broader market ahead of the opening bell. As of 07:21 ET, S&P 500 futures were down 0.9%, while the tech-heavy Nasdaq 100 futures slid 1.7%. Dow Jones futures declined by 0.6%.

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Friday's weakness follows a sharp selloff in technology stocks earlier in the week, intensified by a historic collapse in IBM's shares. The market moves reflect growing investor concern that significant corporate spending on artificial intelligence infrastructure is beginning to divert funds from traditional enterprise software and other technology budgets.

Other Premarket Movers

Several other companies also saw significant premarket declines:

• Regenxbio (RGNX) slumped 16.6% after the gene therapy developer announced plans for a $100 million public stock offering, raising concerns about shareholder dilution.
• Autoliv (ALV) fell 5.8% after the automotive safety supplier's quarterly results included a substantial restructuring charge of approximately $142 million related to the closure of operations in Türkiye.
• STAAR Surgical (STAA) slipped 5.6% as investors appeared to take profits after the company's preliminary second-quarter sales, while showing strong year-over-year growth, were only in line with expectations and did not provide a significant upside surprise.