Netflix shares fell sharply on Friday after the streaming group issued a weaker-than-expected outlook and said chairman and co-founder Reed Hastings will step down from the board.
The stock fell by about 9% to 10% in early trading after Netflix forecast earnings per share for the current quarter below analysts’ expectations, and projected its slowest quarterly revenue growth in a year.
The news comes as Netflix seeks new ways to grow amid intensifying competition, and after a potentially transformative merger with Warner Bros Discovery fell through in February. Kathleen Brooks, research director at X-Trade Brokers (XTB), said, “This was unexpected news, and Hastings is seen as the DNA of the company.”
In a 14-page letter to shareholders, Netflix said Hastings, 65, will not stand for re-election at the annual meeting in June and will focus on philanthropy and other pursuits. Hastings co-founded Netflix 29 years ago and led its transformation from a DVDs-by-mail business into a global streaming giant, reshaping how audiences watch films and television.
“My real contribution at Netflix wasn’t a single decision,” Hastings wrote, but rather, “building a company that others could inherit and improve.”
Netflix is aiming to broaden its growth story beyond subscriptions, investing in advertising, live programming, sport and gaming, while also relying on price rises to boost revenue. The company said advertising revenue remains on track to reach $3 billion in 2026, roughly double the level a year earlier.
Co-chief executive Greg Peters said Netflix ended last year with more than 325 million paid members and is entertaining an audience approaching one billion people. “But even given that number, we still have plenty of room to grow into our addressable market,” he said.
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Warner Bros. Discovery shareholders have approved Paramount Skydance’s proposed takeover of the media group, advancing a deal valued at roughly $110 billion including debt in a move that could reshape Hollywood and the global entertainment industry.
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Netflix has announced a sequel to the hit animated film KPop Demon Hunters, with director Maggie Kang saying she is excited to show audiences what more is in store.
Paramount Skydance emerged as the winner in a months-long battle to acquire Warner Bros Discovery after streaming giant Netflix on Thursday refused to raise its bid for the storied Hollywood studio.
The U.S military said it carried out retaliatory strikes on Iran on Thursday (7 May). Meanwhile, Iran's Joint Military Command accused the U.S. of breaching the ceasefire, by striking an Iranian oil tanker in the Strait of Hormuz and launching attacks on several Iranian cities.
U.S. President Donald Trump said that Iran wanted to negotiate and make a deal in comments to reporters on Wednesday (6 May). But earlier, he warned Washington would ramp up attacks if no agreement was reached.
Argentinian authorities are reconstructing the journeys of Dutch citizens who presented with symptoms of deadly hantavirus after visiting Argentina and Chile as part of a luxury cruise trip, the country's Health Ministry said in a statement on Wednesday (6 May)
Latvian authorities said two drones entered NATO member Latvia from Russian territory and crashed on Thursday morning, with officials linking them to Ukraine’s wider drone operations against targets in Russia.
The U.S. and Iran exchanged fire in and around the Strait of Hormuz, though both sides signalled they did not want escalation. The clashes come as Washington awaits Tehran’s response to a proposed deal to end the war while leaving key disputes, such as Iran’s nuclear programme, unresolved for now.
Asian stocks surged to record highs on 7 May as investors priced in growing hopes of a potential Middle East peace deal, while oil prices eased and the U.S. dollar weakened amid shifting global risk sentiment.
Stocks around the world climbed to fresh record highs on Wednesday (6 May), while oil prices fell sharply, after reports suggested the United States and Iran were nearing an agreement to end conflict.
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