Netflix shares tank on weak forecast; Reed Hastings to step down as chair

Netflix Inc. shares tumbled the most in four years after the company issued a forecast for the second quarter that fell short of analysts’ expectations, underwhelming Wall Street. Netflix also announced that chairman and cofounder Reed Hastings is stepping down after 29 years at the company to pursue philanthropy and personal interests.

In the current quarter, Netflix forecast earnings per share of 78 cents, less than the 84 cents predicted by Wall Street. Revenue projections for the second quarter were also tepid. Netflix said revenue would be $12.57 billion in the three months ending in June, compared with estimates of $12.64 billion. The shares sank as much as 12%, as trading got underway in New York Friday morning. It was the biggest intraday decline since April 2022.

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