By Kit Norton
Shares of Netflix advanced on Thursday, putting them on pace to snap an eight-day losing streak, after Canada's government directed its television and communications regulator to reverse a recent decision requiring U.S. streaming companies to funnel revenue to Canadian content.
In May, Canada's equivalent to the Federal Communications Commission said it would require large streamers to contribute 15% of Canadian revenue to Canadian content. The Motion Picture Association and the U.S. ambassador to Canada had pressed the country to change the policy, and the government acquiesced late Wednesday.
In 2025, business in Canada accounted for about 3% of Netflix's total revenue of $45.18 billion, according to regulatory filings.
Netflix stock jumped 1.6% to $82.79 on Thursday on the news and ahead of the streaming giant's annual shareholder meeting after the closing bell, marking co-founder and Chairman Reed Hastings' departure. The S&P 500 was up 0.2%.
Shares fell 2.2% on Wednesday, closing lower for an eighth straight trading session. However, with investors pushing Netflix stock higher on Thursday, shares could break their most prolonged losing streak since Nov. 7, 2022, when they also fell for eight consecutive trading sessions, according to Dow Jones Market Data.
The reason for the losing streak isn't completely clear, but it appears to be correlated with Hastings' departure.
Netflix's stock hasn't fared well since the company reported better-than-expected first-quarter earnings on April 16. However, the results were overshadowed by disappointing guidance and the announcement that Hastings would step away from the company.
On Monday, Hastings converted 386,700 stock options, originally granted a decade ago at a strike price of just $10.26 a share and set to expire in October 2026, into common stock, according to a regulatory filing. He then sold the shares at weighted average prices of $85.85 and $86.73. Last month, Hastings sold 407,550 shares valued at $37.96 million.
Hastings isn't seeking reelection and his term is expected to officially come to an end at the annual meeting Thursday. Netflix said in April that the board, along with the nominating and governance committee, will take the next steps in reshaping the board "in the months to come."
There could be news out of the meeting around what the future of the board will look like.
Netflix stock has declined 23% since closing at $107.79 on April 16. Shares are down 11% this year and have dropped 33% over the past 12 months.
Despite Netflix's recent performance, Wall Street remains bullish. Of the 56 analysts polled by FactSet, Netflix stock has an average Overweight rating with a $116.33 price target. That price target represents more than 40% upside.
Write to Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 04, 2026 11:18 ET (15:18 GMT)
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