I Want to Buy Netflix Stock, Just Not at This Price
Netflix's first-quarter revenue grew 16% to $12.3 billion, but second-quarter guidance implies a step down to 13% growth. Co-founder Reed Hastings will step down from the company's board in June.
Netflix shares declined after its first-quarter earnings report due to slower growth guidance for Q2 and news that co-founder Reed Hastings will step down from the board in June. The company's revenue rose 16% year over year to $12.3 billion, ahead of management's forecast. Netflix's operating income climbed 18% to $4.0 billion, and its free cash flow jumped to $5.1 billion. Management called for second-quarter revenue of $12.6 billion, implying 13% year-over-year growth. The company's advertising business is on track to roughly double this year, and it has pricing power, having raised prices in March. Hastings handed off the CEO role in 2023 and will not stand for reelection at the June annual meeting.
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