Netflix (NFLX) co-CEO and co-founder Reed Hastings announced Thursday he would step down from his role leading the company. COO Greg Peters will join current Netflix co-CEO Ted Sarandos in that role. Hastings will now serve as the company's executive chairman.
Netflix also reported fourth quarter financial results that were mixed, with subscriber growth topping expectations, coming in at 7.66 million against forecasts for 4.5 million, with adjusted earnings missing expectations.
Shares of Netflix were up as much as 6% following this news.
Here are Netflix's fourth quarter results compared to Wall Street's consensus estimates, as compiled by Bloomberg:
Revenue: $7.85 billion versus $7.86 billion expected
Earnings per share (EPS): $0.12 versus $0.58 expected
Subscribers: 7.66 million versus 4.5 million net additions expected
Quarterly net additions grew by 7.66 million, above company guidance of 4.5 million as the streaming giant rolled out new initiatives like a crackdown on password sharing and a recently launched ad-supported tier to help bolster growth.
A slew of high-profile and record-breaking content releases, including "Glass Onion," "Troll," "All Quiet on the Western Front," "My Name is Vendetta," and "Wednesday," also aided subscriber momentum.
For the current quarter, Netflix expects revenues will total $8.17 billion with earnings per share forecast to total $2.82 as foreign exchange headwinds begin to ease amid a weakening U.S. dollar. 2023 free cash flow is estimated to hit at least $3 billion.
As previously stated, the company will no longer provide subscriber growth guidance as "revenue is our primary top line metric."
Netflix stock have been on a tear in recent weeks, up roughly 60% over the past six months with about a 10% gain so far in January, outperforming the Nasdaq Composite's 5% gain.
"2022 was a tough year, with a bumpy start but a brighter finish. We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering," the company wrote in a letter to shareholders. "As always, our north stars remain pleasing our members and building even greater profitability over time."
Investors will be closely monitoring the company's earnings call for further updates regarding its newly launched ad-supported tier, in addition to its crackdown on password sharing.
Analysts have cautioned investors that the impact of Netflix's foray into advertising will take some time to kick in given the tier just launched in November.
The ad plan, dubbed "Basic with Ads," comes at a cost of $6.99 a month in the U.S. and serves as a complement to Netflix's existing ad-free tiers — the Standard plan ($15.49/month) and the Basic plan ($9.99.)
Other questions include whether or not Netflix will slow down its $17 billion content spend, in addition to the possibility of the company dabbling in more mergers and acquisitions with WWE up for sale.
Alexandra is a Senior Entertainment and Media Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
The school announced Dec. 27 that the Pro Football Hall of Fame member had agreed in principle to become its new head coach.
The departing CEO’s humble company soared to stunning success and paved the way for imitators
Let's talk about a hot stock in the tech industry that's flying under the radar. There may be pizza and a movie at the end.
It's a tech-astrophe out there. But you have options.
The only single-ticker investment that this Fool would trust with his entire life savings might surprise you.
In this article, we will take a look at the 10 dirt cheap stocks to buy. To see more such companies, go directly to 5 Dirt Cheap Stocks To Buy. Amid a disastrous 2022 some analysts and market pundits are predicting a market rebound in late 2023 or 2024. Historically, market declines have given a […]
With the market selling off over the past year, many stocks are cheaper than they were. However, some stand out because they're ridiculously cheap compared to their peers. Right now, two stocks with absurdly low valuations are Energy Transfer (NYSE: ET) and Medical Properties Trust (NYSE: MPW).
Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) CEO Warren Buffett has made millions for his early investors. A $1,000 investment in Berkshire stock in 1965, when Buffett took control of the company, would have grown to more than $36 million in 2021 if the investor remained invested. Among Berkshire's largest holdings, there are a few that stand out for their durable brands and competitive strengths.
Dow Jones futures: Tech stocks are reviving, leading Friday's market rally. Tesla and Boeing headline market-moving earnings reports on tap.
If you want $10,000 in passive income in 2023, it's possible to do so by investing a total of $110,000 in these high-yield dividend stocks. As a BDC, Ares provides financing to small to medium-sized businesses. The company must return at least 90% of its taxable income to shareholders in the form of dividends.
DNB Asset Management increased positions in Tesla and Plug Power, while slashing its stake in General Motors in the fourth quarter.
These best-of-breed names belong to a select group of 48 companies that have raised their dividends for at least 50 consecutive years.
Tough times are coming — but that doesn't mean you can't make money.
(Bloomberg) — The pause in the stock market’s strong start to 2023 underscores the main question vexing much of Wall Street: When will it be safe to start buying again? Most Read from BloombergPrince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine MaxwellHolmes Belongs in Prison, Not $13,000-a-Month Manor, US SaysCitadel Makes $16 Billion to Top Paulson’s ‘Greatest Trade Ever’China Says Covid Deaths Top 12,600 and More Than 1 Billion InfectedTen People Killed in Mass Shooting Near Los Ange
Kinder Morgan (NYSE: KMI) formed a new business unit in 2021 to capitalize on commercial opportunities as the global economy transitions to lower-carbon energy. The initial focus of its new Energy Transition Ventures group has been building a renewable natural gas platform. It has also been evaluating opportunities in other sectors, including carbon capture, utilization, and sequestration (CCUS).
Nvidia is a giant in data centers and gaming, but semiconductor companies are bracing for a bumpy 2023. Is Nvidia stock a buy right now? Recently, World Semiconductor Trade Statistics predicted that chip sales will decline 4.1% in 2023.
These snowbirds are heading south for the winter. And staying put.
The boom in special purpose acquisition companies (SPACs) and flurry of initial public offerings (IPOs) in 2020 and 2021 produced a lot of public companies that are starting to run into serious financial trouble in this difficult economic environment. Banking disruptor SoFi Technologies (NASDAQ: SOFI) was a product of the SPAC boom, and like many of its fellow ex-SPACs, its stock has performed poorly — down about 79% from the peak. In addition to the general cooling off of high-growth stocks, investors are frustrated that SoFi's core student loan refinancing business remains at a virtual standstill, and there are worries that higher interest rates could hurt its lending operations, by far the more profitable side of the business.
The government is in a doom spiral of spending and borrowing
Verizon (NYSE: VZ) and Intel (NASDAQ: INTC) give investors a healthy dividend yield plus a chance for capital appreciation. This video will answer which of these is the better dividend stock to buy. *Stock prices used were the afternoon prices of Jan.
Netflix earnings: CEO Reed Hastings steps down, COO Greg Peters to take co-CEO role – Yahoo Finance
