Here's what analysts think about Netflix's CEO change

Published Fri, Jan 20 202311:45 AM ESTUpdated Fri, Jan 20 202312:17 PM EST

Reed Hastings' departure as co-CEO does little to change how analysts view Netflix , or the company's ability to accomplish its long-term strategies, analysts say. The streaming giant announced Thursday that founder Reed Hastings would give up his role after more than two decades and serve as executive chairman. The move came along with quarterly results that fell short of earnings estimates but showed subscriber numbers that far surpassed expectations . "The executive team has worked together for 15 years and Netflix's strategy continues as is, we believe," wrote Morgan Stanley analyst Benjamin Swinburne in a note to clients. "The company's focus, in our view, has always been an underappreciated differentiator and we expect that focus to remain under new leadership." Top tech analyst Mark Mahaney reiterated this viewpoint, noting that new co-CEO Greg Peters' long tenure at the company should make for an easy transition. He will join current co-CEO Ted Sarandos in leading the company. That said, the handoff does introduce "some execution risk for a company that is in the middle of a major product pivot," the Evercore ISI analyst said. Peters most recently served as chief operating officer. Despite the title change and a step back from day-to-day operations, analysts anticipate that Hastings will continue to be involved in longer-term decision-making. "Importantly, the changes today reflect how NFLX has been run for at least the last few quarters, & we expect Ted to continue to focus more on content & Greg more on operations, product, & technology," wrote JPMorgan's Doug Anmuth. "And while Reed will not be involved in day-to-day operations as Executive Chairman, we expect him to remain very close to the company in terms of strategy & important product decisions." Even analysts somewhat conservative on the stock view the leadership shift as a positive, including Needham's Laura Martin, who still views the stock's valuation as "too high." Netflix shares jumped more than 6% in trading on Friday. The stock has gained 14% year to date, but is about 56% below its 52-week high. — CNBC's Michael Bloom contributed reporting