TLDR
- Netflix stock dropped nearly 5% over a week, marking the biggest weekly decline since April, as Elon Musk urged his 227 million X followers to cancel their subscriptions.
- Musk’s boycott campaign focused on claims about content in kids’ shows, specifically targeting the canceled series “Dead End: Paranormal Park” which ended in 2023.
- Netflix lost approximately $15 billion in market value over several sessions following Musk’s social media posts criticizing the streaming service.
- The company reported strong Q2 2025 results with revenue of $11.08 billion, up 16% year over year, and raised full-year revenue guidance to $44.8-$45.2 billion.
- Netflix did not respond to the controversy and continues pushing forward with AI investments, physical expansion plans including Netflix House venues, and new content releases.
Netflix stock closed out its worst week since April as Tesla CEO Elon Musk ramped up calls for users to cancel their subscriptions. The streaming service saw shares fall nearly 5% over the five-day trading period ending Friday.
The decline came as Musk repeatedly posted to his 227 million followers on X, urging them to drop Netflix over content concerns. “Cancel Netflix for the health of your kids,” Musk wrote on Tuesday.
The campaign focused on a show that was actually canceled two years ago. “Dead End: Paranormal Park” ended in 2023, but recently became the target of conservative criticism over how it depicted certain characters.
Musk shared or commented on more than two dozen posts attacking Netflix’s programming choices. His memes and commentary specifically targeted content aimed at kids and teens.
Market analysts estimate Netflix lost around $15 billion in market value over several sessions. The stock dropped 2% to 3% during the period, closing at $1,153.32 on October 3.
That week, shares hit a low of $1,143.43 and a high of $1,168.90. The volatility stood out because it appeared linked to social media rather than earnings or business fundamentals.
Netflix did not respond to requests for comment. The company has remained silent throughout the controversy, declining to address Musk or his supporters directly.
Revenue Growth Continues Despite Controversy
The financial picture tells a different story than the stock movement suggests. Netflix reported strong Q2 2025 results with revenue of $11.08 billion, up 16% year over year.
Operating income reached $3.78 billion with a margin of 34.1%, compared to 27.2% a year earlier. Net income came in at $3.13 billion.
The company raised its full-year revenue guidance to $44.8 billion to $45.2 billion. Management expects a full-year operating margin of around 30%.
Netflix is set to report third quarter earnings on October 21. The company expects third quarter revenue of $11.53 billion and earnings per share of $6.87.
Both figures exceed initial analyst estimates. Ad sales are on pace to roughly double to $3 billion next year, according to executives.
U.S. Market Still Critical for Revenue
About 70% of Netflix members live outside the United States and Canada. But the UCAN region still generates roughly 45% of revenue due to higher average revenue per user.
The company continues to see strong growth in Asia-Pacific and Latin American markets. Those gains help offset slower growth in North America.
If the boycott movement gains traction among conservative families, it could create measurable subscriber risk. The impact would be hardest to quantify since Netflix no longer discloses quarterly subscriber numbers.
This isn’t Netflix’s first social media firestorm. In 2020, the French film “Cuties” sparked bipartisan criticism and the #CancelNetflix hashtag trended for days.
Subscription analytics firm Antenna reported cancellations surged fivefold at the time. YipitData found churn hit a multi-year high.
The company weathered that controversy with little long-term damage to its subscriber base. Whether this situation follows the same pattern remains to be seen.
Business Plans Move Forward
Netflix continues executing on several strategic initiatives. The company posted high-paying AI roles, with some positions offering up to $700,000 for work on advertising and internal operations.
Netflix House, a concept for immersive fan venues, launches in Dallas and Philadelphia in 2025. Las Vegas is scheduled for 2027.
October brought new seasons of “Love Is Blind” and “The Diplomat,” plus the launch of “Genie, Make a Wish.” The animated film “KPop Demon Hunters” broke viewing records and received a theatrical singalong version.
The company continues working with talent like Ms. Rachel. Some partnerships appear to be winding down, including the deal with Prince Harry and Meghan Markle.
On Thursday, Oppenheimer analyst Jason Helfstein maintained his Outperform rating and $1,425 price target. He cited strong third quarter engagement data with hours viewed up 20% year over year.
Netflix shares lagged the broader market last week, which climbed about 2% to new record highs. The stock also trailed Big Tech peers like Amazon and Meta during the same period.
