Netflix shares plunge after weak guidance and news that cofounder Reed Hastings will leave the board

• Netflix slightly beat revenue and operating income estimates in its first quarter earnings.
• Shares tumbled in after-hours trading after weak guidance for the second quarter.
• Cofounder Reed Hastings will leave the board in June.

Netflix's post-Warner Bros. honeymoon is over.

Wall Street wasn't pleased with the streaming giant's first-quarter earnings report, which was also its first since it backed out of its bid for WBD's streaming and studio assets.

Netflix's stock dropped by over 9% in after-hours trading. Netflix beat both revenue and earnings estimates last quarter, the company told investors on Thursday afternoon. However, Netflix's second-quarter guidance came in below Wall Street's estimates.

Netflix also announced that cofounder and former CEO Reed Hastings would leave the board in June.

Netflix's revenue rose 16% to $12.25 billion in the first quarter, just over the consensus estimate of around $12.2 billion, as tracked by S&P Global.

Operating income also rose to $3.96 billion, roughly in line with the $3.9 billion estimate. Earnings per share came in at $1.23, well above S&P Global's estimate of $0.77, in part because of the $2.8 billion breakup fee that Netflix collected from Paramount Skydance.

Shares had risen by more than 40% from their late-February low, when doubts mounted about the company's chances of landing Warner Bros.

Wall Street wasn't a fan of Netflix's Warner Bros. deal, as its shares had lost about a third of their value during its pursuit of the company.