Netflix Shares Drop Despite Revenue Beat as Hastings Steps Down

Shares of Netflix fell more than 8% after the company reported quarterly revenue that narrowly beat expectations, according to Agence France-Presse (AFP).

Despite strong profit of $5.28 billion, investors focused on long-term growth challenges. (Photo: Netflix Facebook)

Netflix posted revenue of $12.25 billion, slightly above forecasts, but investor sentiment was weighed down by news that co-founder Reed Hastings will step down as chairman when his term ends in June.

“Netflix changed my life in so many ways,” Hastings said in a letter to investors, reflecting on the company’s global expansion.

Despite strong profit of $5.28 billion, boosted by a $2.8 billion termination fee from a scrapped deal involving Warner Bros. Discovery, investors focused on long-term growth challenges.

Netflix faces intensifying competition from rival streaming platforms and short-form video apps such as TikTok, which continue to compete for audience attention.

The company had earlier stepped back from a potential acquisition of Warner Bros., allowing a rival bid from Paramount Skydance to move forward.