Apr. 17 at 9:40 AM
$NFLX is pulling back for three key reasons:
Co-founder Reed Hastings is stepping down from the board, which the market typically views negatively for leadership continuity.
Q2 EPS guidance missed expectations:
$0.78 vs
$0.84 consensus.
Excluding the one-time
$2.8B breakup fee tied to the Warner dealâwhich inflated YoY earnings by ~60%âunderlying EPS would have missed by roughly
$0.02.
Overall, fundamentals remain solid, but the stock had already run from the
$70â95 range to around
$108, making it somewhat stretched. This pullback looks more like a reset in expectations than a structural breakdown. Notably,
$NFLX has entered the top 10 holdings on Robinhood for the first time, highlighting increased retail participation after the prior 30% dip.
$NFLX -9%
