NFLX Q1 beat, Q2 guide soft, Hastings off the board. Timeline in one place

Netflix had a lot happen in like 36 hours so i'm putting it all together here.

Thursday night they drop the Q1 8-K. Revenue $12.25B, a beat. On paper Q1 looks solid, 16% growth and a 32% operating margin. Problem is $2.8B of the profit line is a termination fee from the Warner Bros acquisition Netflix tried to do for $42B that collapsed earlier this month. Take that out and its just a normal quarter.

Then Friday the 10-Q lands with the Q2 guide, and the guide is soft. Operating margins YoY going lower, which is the part that pissed people off (myself included, Im long a little). Slowest revenue growth in a year too.

And then tucked in the filings: Reed Hastings stepping off the board in June. 29 years. Didnt even lead with it, which is kind of insane honestly, you bury a co-founder departure?

Stock fell ~9% after hours Thursday, kept bleeding Friday.

My two cents, the $3B WBD fee made the headline print look better than the underlying business, and now that investors have actually opened the 10-Q they don't like what they see. Hastings walking the same night just stacks a second problem on top. Also tbh the whole ad-tier strategy was supposed to juice margins not compress them so what exactly is the plan here.

Holding for now. Selling into a down-9 print feels dumb and I'm not adding either.