Investors expected three things from Netflix - it delivered on 'none'

Netflix reported Q1 EPS of $1.23 on $12.25 billion in revenue but shares plunged about 10% as the company failed to deliver three catalysts investors had priced in: unwinding roughly $250m in deal-related expenses, aggressive global price hikes, and a material buyback expansion. Citi’s Jason Bazinet also flagged a “transparency gap” after management declined to disclose its internal engagement metric, while external signals show cooling viewership. The miss and lack of clarity prompted bearish market reaction and raised strategic concerns around user-generated content as a competitive threat, despite Wall Street’s consensus overweight and a near-$115 mean price target.