Netflix (NASDAQ: NFLX) shares fell sharply this week as billionaire Elon Musk called for a boycott of the streaming giant, accusing it of promoting “transgender messaging” in children’s programming.
The stock dropped nearly 5% over the five-day trading period ending Friday, marking its steepest weekly decline since early April and significantly underperforming the broader market, which rose about 2% to fresh record highs.
The sell-off follows a series of posts on X (formerly Twitter), where Musk urged his 227 million followers to cancel their Netflix subscriptions.
“Cancel Netflix for the health of your kids,” Musk wrote earlier this week, amplifying criticism against the platform’s alleged political and social messaging.
Cancel Netflix for the health of your kids https://t.co/uPcGiURaCp
— Elon Musk (@elonmusk) October 1, 2025
His campaign quickly gained traction on social media, sparking heated debates about the company’s content strategy and influence on younger viewers.
Boycott Threat Casts Shadow Ahead of Earnings
The controversy arrives just weeks before Netflix’s third-quarter earnings report, scheduled for later this month.
Since the company stopped disclosing subscriber numbers on a quarterly basis, the immediate financial impact of Musk’s boycott campaign remains uncertain. However, the negative sentiment could weigh on short-term investor confidence.
In its last earnings report, Netflix beat Wall Street expectations and raised its full-year revenue outlook. The company projected Q3 revenue of $11.53 billion and earnings per share (EPS) of $6.87, both slightly ahead of analyst estimates.
For the full year, Netflix expects revenue between $44.8 billion and $45.2 billion, fueled by the rapid growth of its ad-supported tier and steady global engagement.
Executives have emphasized the success of Netflix’s advertising business, forecasting ad sales to double to $3 billion by next year.
The company is also banking on high-profile releases such as “Wednesday,” “Stranger Things,” and “Squid Game” – alongside its growing live sports lineup to sustain subscriber momentum.
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Familiar Territory for Netflix
This isn’t the first time Netflix has faced a social media-driven backlash. In 2020, the company weathered intense criticism over the French film “Cuties,” which some accused of sexualizing minors.
During that controversy, analytics firms reported a spike in subscription cancellations, but the long-term financial impact proved minimal.
Whether Musk’s latest boycott call will have a more lasting effect remains to be seen. Given Netflix’s massive global user base and diversified content portfolio, many analysts believe the fallout could be temporary.
Analysts Remain Bullish
Despite recent volatility, several Wall Street analysts maintain confidence in Netflix’s growth prospects. Oppenheimer analyst Jason Helfstein reaffirmed his Outperform rating and $1,425 price target, citing a 20% year-over-year increase in total viewing hours and robust engagement with original and live programming.
While Musk’s comments have clearly rattled some investors, Netflix’s fundamentals strong engagement, expanding ad revenue, and an unmatched global reach suggest that the streaming leader may once again weather the storm.
