Netflix Co-founder Hastings Steps Down as Chairman, Stock Plummets ~9%
Netflix co-founder Reed Hastings announced his resignation as chairman, causing the company's stock to drop by approximately 9%. This departure comes at a challenging time for Netflix, facing increased competition and slowing revenue growth. The company also predicted lower-than-expected earnings per share for the current quarter.
📋 Article Processing Timeline
- 📰 Published: April 17, 2026 at 09:14
- 🔍 Collected: April 17, 2026 at 09:31 (17 min after Published)
- 🤖 AI Analyzed: April 17, 2026 at 17:09 (7h 37m after Collected)
LOS ANGELES — Netflix Chairman Reed Hastings is stepping down from the streaming media service company he co-founded 29 years ago.
Reuters reported that Hastings, 65, chose an inopportune time to leave. With fierce competition leading to slowing revenue growth and the collapse of a potentially transformative merger with Warner Bros Discovery in February, Netflix is currently seeking new avenues for growth.
According to the London Stock Exchange Group (LSEG), Netflix today predicted that its earnings per share for the current quarter would be lower than analysts' expectations, and quarterly revenue growth would be the slowest in a year.
Affected by the news of Hastings' departure, Netflix's stock price plummeted by approximately 9%.
In a 14-page letter to shareholders released today, Netflix emphasized its commitment to doubling down on its established strategy of entertaining the world, providing movies and TV series for audiences of different tastes, cultures, and languages. In addition, Netflix maintained its full-year outlook.
Netflix Co-CEO Greg Peters stated that Netflix had over 325 million paid members by the end of last year, with an overall reach of nearly 1 billion viewers. But he said: "Even at this scale, we still have significant room for growth in our potential target markets."
Netflix stated in its letter to investors that Hastings will not seek re-election at the annual shareholders' meeting in June and plans to focus on philanthropy and other personal development.
Richard Greenfield, a media analyst at LightShed Partners, said: "Netflix's revenue is growing in double digits, its profit margin is expanding in 2026, and its free cash flow is strong. Despite a lackluster financial performance in the first quarter, Hastings' departure has made investors uneasy."
Netflix did not explain how it would use the $2.8 billion termination fee it received after losing Warner Bros. film studios and HBO; in addition, Netflix's first-quarter earnings per share rose to $1.23, higher than $0.66 in the same period last year. (Compiler: Chen Yu-ting) 1150417
Reuters reported that Hastings, 65, chose an inopportune time to leave. With fierce competition leading to slowing revenue growth and the collapse of a potentially transformative merger with Warner Bros Discovery in February, Netflix is currently seeking new avenues for growth.
According to the London Stock Exchange Group (LSEG), Netflix today predicted that its earnings per share for the current quarter would be lower than analysts' expectations, and quarterly revenue growth would be the slowest in a year.
Affected by the news of Hastings' departure, Netflix's stock price plummeted by approximately 9%.
In a 14-page letter to shareholders released today, Netflix emphasized its commitment to doubling down on its established strategy of entertaining the world, providing movies and TV series for audiences of different tastes, cultures, and languages. In addition, Netflix maintained its full-year outlook.
Netflix Co-CEO Greg Peters stated that Netflix had over 325 million paid members by the end of last year, with an overall reach of nearly 1 billion viewers. But he said: "Even at this scale, we still have significant room for growth in our potential target markets."
Netflix stated in its letter to investors that Hastings will not seek re-election at the annual shareholders' meeting in June and plans to focus on philanthropy and other personal development.
Richard Greenfield, a media analyst at LightShed Partners, said: "Netflix's revenue is growing in double digits, its profit margin is expanding in 2026, and its free cash flow is strong. Despite a lackluster financial performance in the first quarter, Hastings' departure has made investors uneasy."
Netflix did not explain how it would use the $2.8 billion termination fee it received after losing Warner Bros. film studios and HBO; in addition, Netflix's first-quarter earnings per share rose to $1.23, higher than $0.66 in the same period last year. (Compiler: Chen Yu-ting) 1150417