Netflix shares took a hit this week, marking their biggest weekly drop in months, as Tesla CEO Elon Musk continued his public campaign for a boycott against the streaming giant. Musk is urging his 227 million followers on X to cancel their Netflix subscriptions, accusing the company of pushing transgender-related messages in its kids’ shows.
Over the last five days, Netflix stock has fallen nearly 5%, a significant drop, especially as the broader market has been hitting new record highs. “Cancel Netflix for the health of your kids,” Musk wrote in one of his many posts criticizing the company’s programming.
This isn’t the first time Netflix has been at the center of a social media firestorm. In 2020, the company faced a similar backlash over the film “Cuties,” with the hashtag #CancelNetflix trending for several days. While that controversy caused a temporary spike in cancellations, the company ultimately weathered the storm with little long-term damage.
The timing of Musk’s campaign is not great for Netflix, as the company is set to report its third-quarter earnings later this month. Since Netflix no longer reports its subscriber numbers quarterly, it will be difficult to determine if the boycott is having any real, immediate impact.
Despite the turmoil, some analysts are still bullish on the company. One analyst this week pointed to strong engagement data, with hours viewed up 20% from last year, as a sign of the company’s continued strength. Still, with one of the world’s most influential figures actively campaigning against it, Netflix is facing another major public relations battle.
