Shares of Netflix slipped Thursday - even after the streaming giant delivered a blockbuster set of first-quarter results.
The company beat Wall Street forecasts on revenue, pulling in $12.25 billion for the quarter - ahead of the $12.18 billion analysts had expected and up a hefty 16 percent from the $10.54 billion it raked in a year earlier.
Profits were even more eye-catching. Earnings per share jumped to $1.23 - nearly double the 66 cents reported during the same period last year - though the figure wasn't directly comparable to analyst estimates of 76 cents.
But investors appeared rattled by a major leadership shake-up unveiled alongside the results.
Co-founder and chairman Reed Hastings will step down from the board in June when his term expires, marking the end of an era for the company he helped build into a global streaming powerhouse.
Hastings had already relinquished the CEO role in 2023, handing the reins to co-CEOs Greg Peters and Ted Sarandos.
Reflecting on his time at the company, Hastings said in a shareholder letter: 'Netflix changed my life in so many ways,' pointing to the January 2016 global rollout as a standout moment. He is now set to turn his attention to philanthropy and other ventures.
Netflix dropped over 8 percent in after-hours trading on Thursday following the earnings release.
Shares of streaming titan Netflix slipped Thursday - even after the streaming giant delivered a blockbuster set of first-quarter results
Co-founder and chairman Reed Hastings will step down from the board in June when his term expires
The streamer's latest price hike sparked a wave of fury online, with long-time subscribers saying they are finally cancelling after years of rising costs.
Netflix raised prices across all plans this month, pushing its premium tier to $26.99 a month, plus local sales tax, and its ad-supported option to $8.99.
But instead of shrugging it off, many users say this is the final straw.
'I'm done with the constant price hikes. After years of loyalty, I'm out,' one customer wrote on Reddit, announcing they had cancelled their subscription.
Similarly, another long-time fan said they were finally calling it quits. 'I had been a Netflix customer for over 20 years and started streaming with them in 2007, but I'm done.'
They added that they had also cancelled Disney+, Hulu, Paramount+ and Peacock, citing similar price increases.
Others said they were surprised at how little they missed the service once it was gone.
'I cancelled about a year ago and was surprised how quickly I forgot about Netflix,' one commenter said.
Industry analysts say the latest move reflects a broader trend across the streaming landscape, dubbed 'streamflation', with companies increasingly raising prices in an effort to turn subscription businesses into reliable profit engines.
The price increase follows a similar move in January 2025 and comes as Netflix pours billions into new shows, films and live entertainment ventures.
That investment includes blockbuster movies, new television series, live sports-style events and interactive programming, all designed to keep subscribers engaged and reduce cancellations.
Netflix has also begun expanding into live entertainment and video podcast-style programming, a move executives believe will open new revenue streams and help differentiate the platform from rivals.