Netflix shares fell more than 3% in after-hours trading on Tuesday after the streaming giant announced that co-founder Reed Hastings will step down from its board. The company confirmed the move in a filing with the U.S. Securities and Exchange Commission, stating Hastings will depart by the end of the month. His departure follows his transition from CEO to executive chairman in 2023, a role he will now leave entirely.
The announcement came alongside Netflix’s latest earnings report, which showed subscriber growth of 16 million in the first quarter, exceeding expectations. Revenue rose 14.8% to $9.37 billion, while net income climbed 21% to $2.33 billion. Despite the strong financial results, the stock slipped in extended trading as investors focused on the leadership change.
Hastings, who co-founded Netflix in 1997, has been a central figure in the company’s growth from a DVD rental service to a global streaming powerhouse. His decision to leave the board marks the end of an era, though he will remain a major shareholder. Analysts suggest the move could signal a shift in the company’s strategic direction under new leadership.
Netflix’s stock has fluctuated this year amid competition from rivals like Disney+ and Max. The company continues to invest heavily in content, spending over $17 billion annually on original programming. Investors will watch closely to see how the board reshuffle affects future decisions, particularly in content acquisition and pricing strategies.
The news follows recent leadership changes, including the appointment of Greg Peters as co-CEO alongside Ted Sarandos in January. Hastings’ exit from the board comes as Netflix faces increasing pressure to maintain its dominance in the crowded streaming market.
Source: e24.no