Netflix shares fall 1% in pre-market as Elon Musk echoes boycott calls; market cap drops $17 billion in 3 days

Netflix extended its losing streak in pre-market trading on Thursday, dropping 0.8% to a two-month low of $1,162 per share on Nasdaq, following a 2.3% decline in the previous session, a rare stumble on a day when the S&P 500 notched a record close above 6,700.

If the stock continues to slide today, it will mark a fourth consecutive day of losses.

Why is the stock under pressure?

Netflix shares came under pressure after billionaire Elon Musk urged users on his platform X (formerly Twitter) to cancel their subscriptions following cancellation of his account.

The call came in response to controversy around the animated series Dead End: Paranormal Park, which features a transgender character.

The backlash was triggered by a post from the account Libs of TikTok, which accused the show of “pushing pro-transgender [content] on CHILDREN.” The post, made on September 29, has since garnered over 26 million views, Hindustan Times reported.

The report also states that the account claimed Steele mocked the killing of conservative activist Charlie Kirk, who was fatally shot on September 10 at a university event in Utah. Steele has denied the allegation.

Kirk, co-founder of Turning Point USA, was shot dead at a university event on September 10. His death has prompted polarized reactions online and calls for accountability from U.S. Vice President JD Vance, Hindustan Times noted.

Musk amplified the criticism by reposting the Libs of TikTok content and writing, “This is not OK,” followed by, “Cancel Netflix for the health of your kids.” When a user commented that they had canceled their subscription, Musk replied, “Same.”

It's the latest example of Musk wading into the culture wars and urging his 226 million followers to take action against a company with which he disagrees.

​Notably, Musk has openly campaigned against ‘wokism’ in the last few years and stated his opposition to what he calls the ‘woke mind virus.’

Musk shares user cancellations

In one post, Musk shared a user’s cancellation confirmation, writing simply “Yes” in approval. The confirmation emails he shared highlighted various users’ cancellations, with many expressing they were “done” with Netflix, further building momentum for the boycott.

One user echoed this sentiment, claiming, "This goes way beyond canceling Netflix... This is you fighting back and taking a stand. This is what happens when you come after my kids." Musk’s reposting of such messages serves to rally his followers and make the campaign against Netflix feel like a collective action.

In addition to content concerns, Musk shared a tweet from 2020 where a user critiqued Netflix for seemingly taking stances on social issues like Black Lives Matter but avoiding other sensitive topics.

The comments added pressure to Netflix, which has faced criticism in recent years from conservative groups over content decisions. The company has maintained that its catalog is designed to serve diverse audiences across demographics.

Musk’s boycott echoes cost Netflix $17 billion in market value

Netflix shares fell over 3% in the last trading session, eroding $17 billion in market value and bringing the company’s market cap down to $497.17 billion at Wednesday’s close.

In June, the shares touched a record high of $1,341. Since then, the stock has remained under pressure, correcting 14.31% from that peak. However, the shares are still up 29% year-to-date, well ahead of the S&P 500’s 14% gain.

At its peak, the company’s market capitalization reached $569.83 billion.

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