Netflix Inc
CNBC's MacKenzie Sigalos reported on Friday that Netflix shares fell nearly 9% after earnings despite beating revenue and profit estimates, as weak second-quarter guidance and an unchanged full-year outlook weighed on sentiment.
She noted that co-founder Reed Hastings' decision not to seek re-election to the board added to investor uncertainty.
She also highlighted that co-founder Ted Sarandos defended the company's core business, outlined plans for organic and M&A investments, and emphasized live content-especially sports, including ongoing discussions with the NFL-as a key growth driver.
Mark Mahaney Sees Intact Fundamentals Despite Pullback
Evercore ISI's Mark Mahaney told CNBC that the sell-off reflects near-term disappointment rather than structural issues.
He explained that Netflix front-loaded expenses more than expected, which pressured guidance, but maintained that revenue growth should continue to outpace expenses, supporting margin expansion.
He added that subscriber trends remain stable and expects the stock to recover as the market reassesses fundamentals.
Mahaney said Netflix can still deliver low-teens revenue growth and around 20% earnings growth, driven by live content, sports, and a growing ad business, which he expects to scale from a small base toward as much as $10 billion over time.
However, he called the stock "not a dramatic buy opportunity."
Rich Greenfield Highlights Growth Potential And Investor Caution
LightShed Partners' Rich Greenfield told CNBC that Netflix met expectations but failed to deliver the upside investors wanted, contributing to the stock's decline after a strong prior run.
He noted that Hastings' board exit has unsettled investors, even as management clarified that it was not a strategy-related move.
He said the market needs time to regain confidence in leadership.
Greenfield maintained that Netflix can still grow revenue in the low-to-mid teens and expand earnings by more than 20%, supporting a premium valuation.
He pointed to strong cash generation, continued growth even without major breakout hits, and potential M&A opportunities as the media landscape evolves.
NFLX Stock Price Activity: Netflix shares were down 9.79% at $97.24 during premarket trading on Friday, according to Benzinga Pro data.
