Netflix stock falls after company reports earnings, announces Reed Hastings will step down as chairman
Netflix co-founder and CEO, Reed Hastings, is in Sydney to meet with executives of other subscription streaming services on Feb. 25, 2022.
Wolter Peeters | Fairfax Media | Getty Images
Netflix‘s stock dropped on Thursday after the streaming giant released its first quarter earnings report.
The company beat Wall Street expectations for revenue, reporting $12.25 billion for the first quarter, topping the $12.18 billion expected by analysts polled by LSEG and 16% higher than the $10.54 billion it reported in the year-ago quarter.
Earnings per share came in at $1.23, nearly double the 66 cents per share that Netflix reported during the same period last year. That result was not immediately comparable to analyst expectations of 76 cents.
The company also announced that Reed Hastings, Netflix’s co-founder and current chairman, would exit the board in June when his term expires.
Hastings stepped down from his CEO role in 2023. Greg Peters, who had served as chief operating officer, stepped into the co-CEO role alongside Ted Sarandos.
“Netflix changed my life in so many ways, and my all‑time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service,” Hastings said in the company’s shareholder letter on Thursday. Hastings will now focus on philanthropy and other pursuits, according to the letter.
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Source – CNBC
