Streaming powerhouse Netflix has seen its market capitalization shrink by more than $25 billion following billionaire Elon Musk’s public appeal for users to terminate their subscriptions.
Musk’s statement, which came in response to a contentious Netflix series featuring a transgender character that he labeled as “woke propaganda,” quickly gained traction on social media, sparking a widespread boycott movement.
Between September 27 and October 3, Netflix’s valuation reportedly dropped from around $514 billion to $489 billion, marking a significant decline in market worth.
On his X platform, Musk urged, “Cancel Netflix for the sake of your children’s mental well-being.”
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Following Musk’s October 1 call to action, Netflix’s stock price plunged more than 8% within days, erasing over $7 billion in shareholder value.
According to Yahoo Finance, the streaming service endured its steepest weekly stock decline since early April on October 3.
Industry analyst Julia Raymond pointed out that Netflix’s difficulties extend beyond Musk’s influence.
“This incident intensified pre-existing worries about the platform’s content strategy and consumer fatigue over pricing. Musk’s remarks merely hastened an already growing discontent,” she explained.
Despite the downturn, Netflix continues to boast a subscriber base exceeding 260 million worldwide and remains confident that its upcoming content lineup will rekindle viewer interest. While the company has yet to officially address Musk’s comments, insiders reveal that leadership is “carefully tracking public sentiment.”
