- Netflix is spying on children and selling user data, Texas AG Ken Paxton alleges in lawsuit
May 11, 2026 · nypost.com
"When you watch Netflix, Netflix watched you," Texas AG Ken Paxton alleges in the lawsuit.
- Q1 Consumer Subscription Earnings: Roku (NASDAQ:ROKU) Impresses
May 11, 2026
Let’s dig into the relative performance of Roku (NASDAQ:ROKU) and its peers as we unravel the now-completed Q1 consumer subscription earnings season.
Consumers today expect goods and services to be hyper-personalized and on demand. Whether it be what music they listen to, what movie they watch, or even finding a date, online consumer businesses are expected to delight their customers with simple user interfaces that magically fulfill demand. Subscription models have further increased usage and stickiness of many online consumer services.
The 7 consumer subscription stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.
While some consumer subscription stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results.
Best Q1: Roku (NASDAQ:ROKU)
With a name meaning six in Japanese because it was the founder's sixth company that he started, Roku (NASDAQ: ROKU) makes hardware players that offer access to various online streaming TV services.
Roku reported revenues of $1.25 billion, up 22.4% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a very strong quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.Roku Total Revenue
Roku delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 8.3% since reporting and currently trades at $126.20.
We think Roku is a good business, but is it a buy today? Read our full report here, it’s free.
Duolingo (NASDAQ:DUOL)
Founded by a Carnegie Mellon computer science professor and his Ph.D. student, Duolingo (NASDAQ:DUOL) is a mobile app helping people learn new languages.
Duolingo reported revenues of $292 million, up 26.5% year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with a solid beat of analysts’ EBITDA estimates and full-year EBITDA guidance exceeding analysts’ expectations.Duolingo Total Revenue
Duolingo achieved the fastest revenue growth and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.1% since reporting. It currently trades at $112.27.
Is now the time to buy Duolingo? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Netflix (NASDAQ:NFLX)
Launched by Reed Hastings as a DVD mail rental company until its famous pivot to streaming in 2007, Netflix (NASDAQ: NFLX) is a pioneering streaming content platform.
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Netflix reported revenues of $12.25 billion, up 16.2% year on year, exceeding analysts’ expectations by 0.5%. Still, it was a slower quarter as it posted EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter slightly missing analysts’ expectations.
As expected, the stock is down 17.9% since the results and currently trades at $88.46.
Read our full analysis of Netflix’s results here.
Coursera (NYSE:COUR)
Founded by two Stanford University computer science professors, Coursera (NYSE:COUR) is an online learning platform that offers courses, specializations, and degrees from top universities and organizations around the world.
Coursera reported revenues of $195.7 million, up 9.1% year on year. This number was in line with analysts’ expectations. More broadly, it was a slower quarter as it recorded revenue guidance for next quarter slightly missing analysts’ expectations and EBITDA guidance for next quarter missing analysts’ expectations significantly.
The stock is up 3% since reporting and currently trades at $6.15.
Read our full, actionable report on Coursera here, it’s free.
Bumble (NASDAQ:BMBL)
Started by the co-founder of Tinder, Whitney Wolfe Herd, Bumble (NASDAQ:BMBL) is a leading dating app built with women at the center.
Bumble reported revenues of $212.4 million, down 14.1% year on year. This result met analysts’ expectations. However, it was a slower quarter as it produced a decline in its buyers and revenue guidance for next quarter missing analysts’ expectations significantly.
Bumble had the weakest performance against analyst estimates among its peers. The company reported 3.17 million active buyers, down 21.1% year on year. The stock is down 20.1% since reporting and currently trades at $3.42.
Read our full, actionable report on Bumble here, it’s free.
Market Update
Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?
These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
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- Sector Update: Consumer Stocks Decline Late Afternoon
May 11, 2026
Consumer stocks fell late Monday afternoon with the State Street Consumer Staples Select Sector SPDR
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- Texas Sues Netflix for Alleged Data Collection of Children Without Consent
May 11, 2026 · cnet.com
The Texas Attorney General alleges that Netflix has designed its platform to be addictive and plans to sell data "for a handsome profit."
- Texas sues Netflix over data collection; shares edge lower
May 11, 2026
Investing.com -- Texas Attorney General Ken Paxton has filed a lawsuit against Netflix Inc (NASDAQ:NFLX), alleging the streaming giant illegally surveilled users and exploited children’s data. The legal action claims the company rebranded itself as a "logging company" that prioritizes data monetization over consumer privacy.
The state’s petition alleges that Netflix deceptively collected sensitive behavioral information without obtaining proper consent from its millions of Texas subscribers. Shares of the Los Gatos-based company ticked down 1.3% in Monday trading following the announcement of the litigation.
The lawsuit asserts that Netflix misrepresented its business model for years by claiming a subscription fee shielded users from the data-harvesting practices of other Big Tech firms. In reality, the state argues, the platform uses intentional engineering to track viewing habits, device locations, and household network interactions.
According to the filing, every user interaction is treated as a granular data point to be processed and eventually sold. The state contends that this tracking infrastructure was built while executives publicly derided competitors for "serving two masters."
Attorney General Paxton specifically highlighted the alleged exploitation of minors through "kids profiles" that were marketed as safe, segregated spaces. The petition claims these profiles were subjected to the same aggressive telemetry and logging apparatus used for adult accounts.
Netflix is accused of withholding privacy controls from these profiles while misleading parents about the extent of behavioral tracking. The state argues that parents were lulled into a false sense of security by assurances that the platform was "ad-free and kid-friendly."
The lawsuit details how Netflix allegedly pivoted into digital advertising by leveraging mountains of data quietly extracted from families. It claims the company now shares this information with commercial data brokers and advertising technology platforms like Google and Amazon.
These partnerships reportedly allow advertisers to match their own customer lists against Netflix’s internal audience data. The state argues that Texans never agreed to have their viewing identities stitched together across the "shadowy networks" of the advertising industry.
Beyond data collection, the filing alleges that Netflix intentionally designed its interface to be addictive through the use of "dark patterns." Features such as autoplay are cited as tools used to override consumer agency and eliminate natural breaking points.
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The state contends that these design choices are particularly harmful to children, whose impulse control is still developing. By keeping users glued to the screen, Netflix allegedly maximizes the volume of behavioral signals it can harvest for its logging operations.
The Attorney General is seeking to hold Netflix accountable under the Texas Deceptive Trade Practices Act (DTPA). The lawsuit pursues civil penalties of up to $10,000 per violation and seeks a permanent injunction to stop the unauthorized collection of data.
"Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it," said Attorney General Paxton. "Netflix is not the ad-free and kid-friendly platform it claims to be."
Specific demands include requiring Netflix to disable autoplay by default on kids' profiles and purging all deceptively collected data. The state also seeks to prevent future data sharing with third-party brokers without explicit, informed consumer consent.
Netflix has historically countered privacy allegations by framing data collection as an essential component of the modern consumer experience. In past disputes, the company has argued that "logging" user interactions is not a form of surveillance, but rather a technical necessity for maintaining a seamless global streaming infrastructure and delivering the highly personalized recommendations that users have come to expect.
Beyond operational justifications, the company has frequently employed aggressive lobbying and statutory challenges to weaken the legal basis of privacy claims. During its 2011 dispute over the Video Privacy Protection Act (VPPA), Netflix argued that the Reagan-era law hindered innovation in the social media age. This effort eventually helped lead to a 2013 amendment to the VPPA, which simplified the process for companies to obtain long-term, "blanket" consent from users for data sharing.
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- Texas Sues Netflix For Allegedly ‘Spying' On Customers
May 11, 2026 · forbes.com
Paxton accused Netflix of building an illegal “surveillance program” to collect and profit from its users' data. “Netflix is not the ad-free and kid-friendly platform it claims to be.
- Netflix sued by Texas for allegedly spying on consumers
May 11, 2026 · reuters.com
Netflix was sued on Monday by Texas Attorney General Ken Paxton, who accused the streaming company of spying on consumers by collecting their data without consent, and designing its platform to be addictive.
- Comcast vs Netflix: Which Is the Better Dip Buy Now?
May 11, 2026 · 247wallst.com
Both Comcast (NASDAQ: CMCSA | CMCSA Price Prediction) and Netflix (NASDAQ: NFLX) have taken hits over the past month, and retirement-focused investors are wondering which one belongs in the portfolio right now.
- At TV upfronts, AI is in and corporate shuffles are reshaping the line-up
May 11, 2026 · cnbc.com
This week kicks off media and tech giants' annual pitch to advertisers to buy spots for the year ahead. NBC, Fox, Disney and WBD, along with Amazon's Prime Video, Netflix and Google's YouTube will hold presentations, while Paramount just finished its round of pitches.
- NFLX Fairly Valued by DCF at $97
May 11, 2026 · gurufocus.com
On May 11, 2026, we delve into the DCF analysis for Netflix Inc (NFLX), a company that has seen significant price fluctuations over the past year. With a curren
