Netflix loses $25 billion after Musk boycott call

Netflix loses $25 billion after Musk boycott call

Netflix has reportedly lost about $25 billion in market value after Elon Musk publicly urged his followers to cancel their subscriptions over its content. The decline is tied to Musk’s call to “Cancel Netflix for the health of your kids,” which followed backlash over a show featuring a transgender character.

The drop in value seems steep. Analysts say Netflix’s market capitalization fell from around $514 billion on September 27 to approximately $489 billion by October 3—marking a near $25 billion decline. Roughly $7 billion of that loss is reported to have occurred immediately after Musk’s October 1 post. Other sources estimate the loss more conservatively, citing values closer to $15 billion.

Musk’s criticism centered on Netflix’s animated show Dead End: Paranormal Park, which includes a transgender teenage protagonist. The criticism reignited debate over the inclusion of diverse representation in children’s programming. Musk claimed the show advances a “transgender woke agenda” and said the company was pushing LGBT content that he considered harmful to children. He said he had already canceled his own subscription and encouraged his 225+ million followers on X to do the same.

It is difficult to isolate how much of the stock drop is driven purely by Musk’s call versus broader market forces. Despite general market gains in the same period, Netflix underperformed its tech peers like Amazon and Meta.Some analysts caution that investor sentiment in the streaming sector is volatile and may have amplified reactions to the boycott call. So far, Netflix has not issued a formal response to Musk’s accusations or the boycott call.

As the company prepares to release its third-quarter earnings later this month, all eyes are on how it will address the backlash, subscription trends, and future content direction. The timing and scale of the stock drop suggest that high-profile social media campaigns can exert significant influence over investor behavior in tightly contested markets.