Netflix loses billions as Elon Musk calls for users to cancel subscriptions

Netflix shares have plunged nearly 5% over the past week, marking their steepest weekly drop since April.

The development came after the Tesla CEO Elon Musk urged his 227 million followers on X (formerly Twitter) to cancel their subscriptions, marking one of the most high-profile social media-driven boycotts in the company’s history.

The decline erased billions in market value and came even as broader indexes hit new record highs, with rivals like Amazon and Meta outperforming.

The tech billionaire has spent several days calling for a Netflix boycott, accusing the streamer of promoting what he described as “transgender messaging” in children’s shows.

“Cancel Netflix for the health of your kids,” Musk wrote in a widely circulated post on X, amplifying his criticism with memes and reposts that fueled the online backlash.

The controversy comes a few weeks before Netflix reports its third-quarter earnings.

Since the company stopped sharing subscriber figures quarterly, analysts say the immediate financial impact of the boycott could be difficult to measure.

However, investor sentiment has clearly soured amid the public pressure campaign. 

Despite the turbulence, Netflix executives remain optimistic. The company expects ad revenue to double to $3 billion next year.

Notably, this isn’t the first time Netflix has faced a cultural flashpoint. In 2020, the platform drew widespread criticism over the French film Cuties, which was accused of sexualising minors.