Reed Hastings Is Quitting at Netflix. Should You Quit NFLX Stock?

Netflix co-founder Reed Hastings will leave the company’s board and not stand for re-election in June, a governance shift that triggered a 9.7% one-session drop in NFLX shares as investors weighed leadership uncertainty. The sell-off occurred alongside a strong Q1 print: revenue of $12.25 billion (+16.2% YoY) and adjusted EPS of $1.23 (+86.4%), both topping estimates, plus operating income near $4 billion and a 32.3% operating margin. Management kept its full-year 2026 revenue outlook unchanged at $50.7–$51.7 billion (12–14% growth) and flagged continued front-loaded content spending and increased AI and live/video-podcast investments. Wall Street remains largely constructive — 32 of 49 analysts rate NFLX a “Strong Buy,” average price target $114.93 (≈24% upside) — leaving the market torn between near-term governance risk and still-robust fundamentals and growth runway.