Shares of Netflix (NFLX.O) were down on Friday after the company forecast revenue growth below expectations and Chairman and co-founder Reed Hastings said he would not seek re-election
Shares down 9.5%, premarket
<h3>THE BINGE CONTINUES</h3>
Matt Britzman, senior equity analyst at Hargreaves Lansdown, says Hastings stepping down as chairman is a leadership headline, but it is unlikely to drive meaningful changes to strategy as the co-CEOs take on greater influence, while growth prospects now look less predictable than markets had expected
Jefferies (“buy,” PT: $128) says the forecast miss reflected overly optimistic expectations rather than weaker fundamentals, adds that Hastings’ departure raised “no alarm bells”
Evercore ISI (“overweight,” PT: $115) says the selloff reflects disappointment over the lack of an annual outlook upgrade, but adds that fundamentals remain intact, with advertising revenue on track to double in 2026 and engagement hitting a record high
Morgan Stanley (“overweight,” PT: $115) says it would “buy the dip,” citing improving retention, resilient pricing power and advertising on track for about $3 billion in revenue this year, with price hikes expected to support growth in the second half

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- Netflix's shares dropped by 9.5% after the company projected revenue growth that fell short of expectations, coinciding with Chairman Reed Hastings announcing he would not seek re-election.  
- Analysts from Jefferies and Evercore ISI suggested that the forecast miss was due to overly optimistic expectations rather than weakened fundamentals, while advertising revenue is expected to double by 2026.  
- Morgan Stanley indicated a positive outlook, advising to "buy the dip," citing solid retention and pricing strategies supporting future growth.

Reuters

Netflix

Invesco Leisure & ENT ETF

First Trust S-Network Streaming and Gaming ETF

Comm Servcies Select Sector SPDR

T-REX 2X Long NFLX Daily Target ETF

ISHRS S&P Glb Telco

Direxion Daily NFLX Bear 1X Shares

Roundhill NFLX WeeklyPay ETF

Direxion Daily NFLX Bull 2X Shares

Jefferies Financial

Evercore

Morgan Stanley

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MORGAN STANLEY 4.875 DEP SHS REP 1/1000 NCUM PFD SR L

MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

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BUZZ-Street View: Netflix leadership shift dents sentiment, not strategy