Netflix's founder Reed Hastings has decided to step down after 29 years of management. Immediately following the announcement, the stock price plummeted by 8%. It’s clear how much the market depended on this individual.

Reed Hastings explicitly stated he will not run for re-election at the upcoming shareholders' meeting in June. He plans to shift his focus to personal projects such as charitable activities. The departure of the person who revolutionized the streaming industry appears to have been a significant shock to investors.

Looking back, Netflix is a company that completely transformed home video viewing. It challenged Hollywood’s existing business model and continues to influence the entertainment industry worldwide. Since Reed Hastings led these changes, the market’s reaction is understandable.

However, Netflix itself remains strong. It continues to grow at double digits, and profitability is expected to improve by 2026. Free cash flow remains solid. There are no issues with the first quarter’s financial results. Still, investors’ concerns likely stem from the potential loss of Reed Hastings’ leadership influence, which could impact future management decisions.

Analysts’ evaluations are also complex. While acknowledging the company’s growth potential, many note that the uncertainty surrounding the founder’s departure warrants close attention. Netflix has reaffirmed that “the mission remains unchanged,” emphasizing its commitment to delivering high-quality content to diverse viewers worldwide. The full-year outlook has also been maintained. However, the market will likely require tangible results under the new leadership before feeling truly reassured.