Netflix has faced a dramatic financial setback after Tesla and X (formerly Twitter) CEO, Elon Musk, urged his over 227 million followers to cancel their subscriptions. The streaming giant’s market value reportedly dropped by nearly $25 billion within one week, marking its steepest decline in months.
According to Yahoo Finance, Netflix’s market capitalization fell from around $514 billion on September 27 to $489 billion by October 3. Nearly $7 billion vanished overnight after Musk posted on October 1 urging followers to “Cancel Netflix.”
Netflix Shares Tumble Despite Tech Market Gains
On Friday, October 3, Netflix shares recorded their biggest weekly drop since April 4, falling by almost 5% in just five trading days. This happened even as the broader Nasdaq index gained about 2%, with other Big Tech firms like Amazon (AMZN) and Meta (META) closing the week stronger.
On Thursday, October 2, Netflix shares opened 1.2% lower, trimming losses to close 0.8% down at $1,161 by 2:15 p.m. EDT. Forbes also reported that since Musk tweeted about cancelling his subscription on September 30, the stock has dropped 2.4%.
Musk Accuses Netflix of “Woke Agenda”
Musk accused Netflix of allegedly promoting transgender content in children’s shows. His call to boycott followed the backlash surrounding the cancelled Netflix animated series Dead End: Paranormal Park, directed by Hamish Steele, which critics claimed promoted progressive ideologies.
The billionaire amplified his stance by reposting messages accusing Netflix of pushing an “LGBT propaganda agenda.” On Tuesday, he tweeted: “Cancel Netflix for the health of your kids.”
Billions Wiped Out After Musk’s Boycott Call
Reports vary on the financial impact, with conservative analysts estimating Netflix lost about $25 billion, while others peg the figure closer to $15 billion. Regardless of the exact total, analysts agree that the timing between Musk’s boycott calls and Netflix’s stock dip is too close to ignore.
As Musk doubles down on his campaign, analysts warn that prolonged negative sentiment could keep weighing on Netflix’s performance, even as other Big Tech stocks continue their rally.
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