• Netflix said podcasts are gaining traction during daytime hours and on mobile devices, areas where the platform has historically struggled to drive engagement.
• The company is expanding its lineup with shows tied to personalities such as Bill Simmons, Jake Shane, Michael Irvin, and Pete Davidson.
• Despite weaker-than-expected second-quarter guidance, retail traders remain bullish on NFLX, viewing the post-earnings selloff as a buying opportunity.

Netflix, Inc.'s latest financial outlook may have soured investor sentiment, but the streaming giant is seeing early signals from another hot corner that could meaningfully boost overall engagement: podcasts.

On a call following first-quarter earnings results on Thursday, Co-CEO Ted Sarandos told analysts that viewers tend to listen to Netflix podcasts during daytime hours, when the platform historically sees lower engagement.

They're also tuning in on mobile, a format Sarandos said has never been a stronghold for TV and film. "It's great that we get to meet our members where they are, even when they're enjoying other forms of entertainment," Sarandos said. "So that's really — it's really an early sign."

Netflix plans to keep expanding its podcast catalog, which spans originals and licensed content across pop culture, true crime, and sports. "And we've been building out a great lineup of podcasts, both licensed and owned shows like the 'Bill Simmons podcast', the 'Breakfast Club', 'Therapuss' from Jake Shane, which I've been waiting to say all day, 'Pardon My Take,'" Sarandos said. "All of these are doing great. And we have our own podcasts as well, like 'The White House With Michael Irvin' and 'The Pete Davidson show.'"

Netflix Posts Strong Quarter, Soft Guidance

Netflix reported solid first-quarter results on Thursday, but the numbers were quickly overshadowed by weaker-than-expected second-quarter guidance and the announcement that co-founder and board chairman Reed Hastings is stepping down. The stock slumped 10% in overnight trading on Thursday.

The company said its primary internal engagement metric hit a record in the quarter. Investment in flagship content played a role. The launch of "Bridgerton" Season 4, which included events in more than 20 cities, was cited as a standout. Live event programming also contributed to the engagement gains.

Netflix Price Hikes, Mobile Redesign

Netflix said its latest round of subscription price increases in the United States (which came roughly a year after the previous round) has been well received. The company argued that it remains one of "the best entertainment values that has ever existed," adding that U.S. subscribers pay less per hour of viewing than those of any other major streaming service. "In some cases, you would have to pay two times per hour to get a competitive service," the company said, pointing to its $8.99 ads-supported plan as a "highly accessible" entry point.

On the product side, Netflix plans to roll out a redesigned mobile experience by the end of the month, anchored by a vertical video discovery feed, a format popularized by TikTok, Instagram, and YouTube Shorts. "This redesign will better reflect our expanding entertainment offering and make it easier for members to engage how and when they want," the company said.

Warner Bros. Is Off The Table — And Netflix Is Fine With That

Netflix has no regret about the failed Warner Bros. deal. The company said its strategic goals remain intact following its decision to withdraw from the bidding war, which ultimately went to Paramount.

"Warner Bros. would have been a nice accelerant for our strategy, but only at the right price. We have multiple ways to achieve our goals (including producing, licensing, and partnering) and we're constantly seeking to allocate our resources to the most attractive opportunities to maximize the value we are delivering to our members," the company said.

NFLX Retail Traders Not Shaken

On Stocktwits, sentiment toward Netflix was 'extremely bullish' at the last reading, suggesting retail traders are largely unfazed by the post-earnings slump. Message volume linked to NFLX on the platform surged by nearly 800% over the past 24 hours.

One bullish user speculated that share buybacks are going to take NLFX "to $110-115 area in the next few weeks."

Another said "the earnings is no problem and beat. Selling is overblown and works as a good dip buying. Simple."

Netflix's stock is up nearly 15% this year, outperforming key U.S. benchmarks and the State Street Communication Services Select Sector SPDR ETF (XLC), which focuses on U.S. communication services companies, including media, entertainment, and telecom giants.

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