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CNBC
CNBC
1M ago 37 views

Elon Musk is telling his followers to cancel Netflix subscriptions. Here's what's happening

Elon Musk urged followers to cancel Netflix subscriptions over a controversy involving an animated show, causing a 4% drop in shares this week.
Elon Musk is telling his followers to cancel Netflix subscriptions. Here's what's happening
A What happened
This week, Elon Musk encouraged his followers on X to cancel their Netflix subscriptions, citing a controversy related to the animated show 'Dead End: Paranormal Park,' which features a transgender character. Musk's comments came in response to accusations of Netflix promoting a 'transgender woke agenda.' The show was canceled in 2023 after two seasons. Analysts noted that while Netflix shares dropped 4% following Musk's statements, the overall impact on the company's stock is expected to be limited. With 301.63 million subscribers and a market cap of approximately $490 billion, Netflix's financial health appears stable. Experts suggest that any potential backlash from Musk's comments may be offset by increased ad revenue and that the stock remains resilient despite internet controversies.

Key insights

  • 1

    Musk's Influence

    Elon Musk's call for a boycott reflects his significant social media influence.

  • 2

    Stock Resilience

    Analysts believe Netflix's stock will remain stable despite the controversy.

  • 3

    Subscriber Base

    Netflix's large subscriber base may mitigate the impact of Musk's comments.

Takeaways

The long-term effects of Musk's statements on Netflix's performance remain uncertain.

Read the full article on CNBC