17 April 2026
If you are covering the latest results from Netflix and the departure of its chairman, Reed Hastings, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“In its first time reporting since the collapse of the Warner Bros Discovery acquisition, Netflix delivered a lacklustre set of results. There was a small beat on earnings, but this was followed by disappointing guidance, undershooting marginally what the market expects for the next quarter. The big news, however, is the departure of co-founder and chairman Reed Hastings. Hastings had been instrumental in setting the culture and strategy of Netflix and was responsible for the agility it has become famous for.
“The share price has subsequently been punished harshly, with it off 10% in afterhours trading. This may be a slight overreaction, but with a double whammy of mediocre results and the departure of a key figure, it is not surprising investors are trimming positions. Following the WBD deal falling through, this isn’t exactly what we would expect from Netflix, nor what we have become accustomed to.
“Much of the struggles this quarter and for the subsequent months ahead comes from higher costs. Both content and advertising infrastructure investments are going up, a reminder of just how competitive this industry is. Netflix does continue to show good discipline, for example in sports where it is being selective in what it bids for, ensuring it does not overpay. This is leading to some good growth in Asia-Pacific. But it will be interesting to see what happens going forward and whether or not the WBD saga proves to be a one-off distraction.”
