Netflix Inc. (XNAS-NFLX) closed the week with its steepest decline since April, falling nearly 5% over the five day trading period ending Friday. The drop comes as Tesla CEO Elon Musk intensifies calls for a boycott of the streaming giant, urging his 227 million followers on X to cancel their subscriptions over concerns about alleged transgender messaging in children’s programming.
On Friday, Netflix shares closed at $1,153.32, down 0.79% for the day, and slipped slightly further in after hours trading. Musk’s campaign, which gained traction earlier in the week, included reposts and direct messages criticizing Netflix’s content. “Cancel Netflix for the health of your kids,” Musk wrote on Tuesday, sparking renewed debate over the platform’s programming choices. Netflix has not publicly responded to the criticism. The company is set to report third quarter earnings later this month, though the impact of any boycott may be difficult to measure, as Netflix no longer discloses subscriber numbers on a quarterly basis.
In its most recent earnings report, Netflix exceeded expectations and raised its full year revenue outlook. Netflix expects revenue between $44.8 billion and $45.2 billion, driven by growth in its ad supported tier, favorable foreign exchange trends, and consistent user engagement. Executives have highlighted that ad sales are on track to double to $3 billion in 2026. Upcoming releases of popular series such as Wednesday, Stranger Things, and Squid Game, along with expanded live sports offerings, are expected to support continued momentum.
This isn’t the first time Netflix has faced public backlash. In 2020, the release of the French film Cuties triggered bipartisan criticism and a surge in cancellations. Despite trending hashtags like #CancelNetflix, the company ultimately saw minimal long-term impact on its subscriber base.