Netflix Appoints Jay Hoag Chairman as Reed Hastings Exits After 29 Years
NFLX•Netflix disclosed that co-founder Reed Hastings has stepped down as chairman and director after nearly 30 years, appointing veteran board member Jay Hoag as chairman. Shares rose on the announcement, retail sentiment turned extremely bullish and analysts' 12-month price target averages $114.56, implying 39% upside.
1. Board Leadership Change
Netflix’s board voted Jay Hoag as chairman effective June 4, replacing co-founder Reed Hastings in the role. Hoag has served on the board since 1999 and led as independent director for over a decade.
2. Reed Hastings' Departure
Hastings, who co-founded Netflix in 1997 and served as CEO for more than 25 years, did not stand for re-election at the annual meeting. He remains committed to philanthropy and other pursuits after guiding Netflix’s evolution from DVD rentals to a global streaming service.
3. Market Response and Analyst Outlook
Following the announcement, Netflix shares closed up 1% and retail sentiment flipped to extremely bullish. Of 50 covering analysts, 37 rate the stock a buy or higher, with an average 12-month price target of $114.56, suggesting 39% upside.
