Netflix drops after hours as Q2 outlook misses analyst expectations

This streaming pioneer also announced that co-founder Reed Hastings will step down after serving on the board for 29 years to pursue philanthropic endeavors and personal interests. The company stated in a release on Thursday that revenue in the first three months of this year grew 16% to $12.3 billion, surpassing expectations of $12.2 billion. Earnings per share reached $1.23, beating the expected $0.76. However, Netflix forecast current-quarter earnings per share at $0.78, below Wall Street analysts’ estimate of $0.84. After the announcement, the company’s shares fell more than 9% in after-hours trading. Wall Street is now watching to see if Netflix can retain its subscribers. In March, Netflix raised its subscription prices, increasing the ad-free standard plan by $2 to $20 per month.