Overview
- Reed Hastings, the cofounder of Netflix, told investors he will not seek re-election to the board in June and plans to focus on philanthropy, and the company said there was no internal dispute behind the move.
- Netflix shares fell about 8–9% in trading after the announcements, as investors reacted to the leadership change and a cautious profit forecast.
- The company posted strong first-quarter results with about $12.25 billion in revenue, roughly 16% growth, and earnings of $1.23 per share, with net income above $5 billion helped by a $2.8 billion breakup fee from a scrapped Warner Bros. Discovery deal.
- Management guided to roughly $0.78 in second-quarter earnings per share versus about $0.84 expected by analysts, which sharpened concerns about the pace of future growth.
- Executives are leaning into an ad-supported plan, live programming, podcasts, gaming, and AI tools to lift viewing time and compete for attention with platforms like TikTok and YouTube.