Netflix (NFLX) is down about 3% in Monday trading as investors continue to reprice the shares after last week’s earnings release, where management’s second-quarter profit outlook came in below what the market was positioned for. The stock reaction is being driven less by the reported quarter and more by forward expectations for profitability and execution into Q2.

Netflix reported first-quarter results on April 16, 2026 that topped its own internal targets, but the market focused on a weaker-than-expected forecast for second-quarter earnings. In this setup, even modest guidance disappointment can translate into an outsized move because expectations for Netflix’s margin and monetization trajectory had been high following prior strength and pricing actions.

Alongside the quarterly update, Netflix disclosed that co-founder and chairman Reed Hastings will step down from the board in June when his term expires. While the departure is framed as a planned transition, it adds a fresh variable for investors at a time when the stock is already reacting to forward guidance and near-term confidence in the earnings path.