Netflix has lost $25 billion since Elon Musk urged users to cancel subscription.
The streaming giant’s market value has taken a massive hit, reportedly slipping from about $514 billion on September 27 to $489 billion by October 3, a decline of nearly $25 billion.
Almost $7 billion reportedly vanished right after Elon Musk’s October 1 post urging followers to drop their subscriptions.
According to Yahoo Finance, Netflix shares fell dramatically on Friday, October 3, marking their biggest weekly decline since April 4.
Over the past five trading days, the stock dropped nearly 5% as Tesla CEO Elon Musk continued urging his 227 million followers on X to cancel Netflix subscriptions. Musk criticised the streamer for allegedly promoting transgender messaging in kids’ shows.
While the Nasdaq and overall markets climbed about 2% to record highs over the week, Netflix has lagged behind Big Tech peers like Amazon (AMZN) and Meta (META). On Thursday, October 2, as well, Netflix shares opened lower, falling 1.2% before trimming losses to end 0.8% down, reaching $1,161 at 2:15 p.m. EDT, Forbes reported. The stock has dropped about 2.4% since Musk tweeted on Tuesday, September 30, that he had cancelled his Netflix subscription. Over the past five trading days, Netflix shares have fallen 4.4%, even as the tech-heavy Nasdaq marks its fifth consecutive day of gains.
$15 billion in Netflix shares were liquidated after one tweet by Elon Musk. “Cancel Netflix.”
He urged canceling the streaming subscription for the sake of children’s health, labelling it LGBT propaganda.
Some reports estimate that Netflix has lost over $15 billion in market value since Musk’s calls began. While conservative sources peg the number at around $25 billion. But regardless of the exact total, analysts agree the timing between Musk’s boycott call and the stock dip is hard to ignore.
Musk has repeatedly called for a boycott. On Tuesday, he wrote: “Cancel Netflix for the health of your kids.”
The Billionaire CEO also reposted messages accusing Netflix of pushing a “transgender woke agenda.” These boycott comes amid the controversies surrounding the cancelled Netflix animated series, Dead End: Paranormal Park, directed by Hamish Steele. Conservative critics claimed the show promoted progressive ideas they disagreed with.
