This article first appeared on GuruFocus.

Netflix (NASDAQ:NFLX) shares fell sharply about 10% in premarket trading on Friday after co-founder and chairman Reed Hastings said he will leave the company's board, raising questions about strategy at a time when the streaming group is looking for fresh growth.

Hastings will not stand for re-election at the company's annual meeting in June and plans to focus on philanthropy and other interests. He co-founded Netflix 29 years ago and helped guide it from a DVD-by-mail business into a global streaming platform.

The timing drew attention because Netflix is still adjusting after it walked away from a bid for Warner Bros Discovery earlier this year. The company is also leaning more on ad-supported programming, live sports and gaming as growth slows and competition stays intense.

Netflix beat first-quarter revenue and profit estimates on Thursday, but its outlook for the current quarter came in below analyst expectations.