Netflix shares fell 3% to $70.35 in morning trading, leaving them down 25% year to date, after the streamer named Peter Rice chief content officer to succeed Bela Bajaria, who is leaving after nearly a decade. Rice, who previously ran general entertainment at Disney and oversaw ABC, FX and Hulu, takes over later this month, one day after Netflix decided to cut roughly a thousand jobs in its largest layoff round in four years. Disney and Spotify were near flat at $110.71 and $533.77, while the Communication Services ETF (XLC) rose 0.4%. The article says the bull case rests on Rice's operating record and a lower cost base, while the bear case points to slowing growth and execution risk in Netflix's most important division. Rice's first programming approvals could offer the earliest read on his direction.
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