Netflix Stock Sees Biggest Weekly Drop Since April as Musk Calls for Boycott
Techlist Staff
Posted On October 3, 2025
Netflix shares are headed for their steepest weekly drop since April amid a Musk-led boycott campaign.. (AP Photo/Alex Brandon, File)
Netflix (NASDAQ: NFLX) shares slid nearly 5% this week, marking their steepest decline since April 4, as Tesla CEO Elon Musk intensified his campaign urging consumers to cancel subscriptions to the streaming giant.
The drop comes in sharp contrast to the broader market, which gained about 2% to fresh record highs, and also trails Big Tech peers like Amazon (NASDAQ: AMZN) and Meta (NASDAQ: META).
Musk Urges #CancelNetflix
Musk, who has more than 227 million followers on X (formerly Twitter), accused Netflix of promoting transgender content in children’s programming. “Cancel Netflix for the health of your kids,” he posted earlier this week, while sharing a series of messages criticizing the streamer.
Netflix has not issued a comment in response to the boycott calls.
Cancel Netflix for the health of your kids https://t.co/uPcGiURaCp
— Elon Musk (@elonmusk) October 1, 2025
Earnings Ahead
The boycott comes just weeks before Netflix’s third quarter earnings report. Analysts note that while the company no longer discloses subscriber figures quarterly, the near-term financial impact of cancellations could be difficult to measure.
In its latest earnings release, Netflix topped Wall Street expectations and raised its full-year revenue outlook. The company guided for Q3 revenue of $11.53 billion and EPS of $6.87, both above consensus. For 2025, revenue is projected between $44.8 billion and $45.2 billion, boosted by strong adoption of its ad-supported tier, favorable foreign exchange trends, and steady user engagement.
Executives expect advertising revenue to double to $3 billion in 2026, supported by popular returning shows like “Stranger Things”, “Wednesday”, and “Squid Game”, alongside growing investment in live sports streaming.
Not the First Backlash
Netflix has faced public boycotts before. In 2020, the release of the French film “Cuties” sparked bipartisan criticism, with cancellation rates briefly surging fivefold. However, the company ultimately saw little long-term damage.
Analysts Remain Bullish
Despite recent volatility, many analysts remain optimistic. Oppenheimer’s Jason Helfstein reiterated an Outperform rating and a $1,425 price target, citing strong Q3 engagement data, with viewing hours up 20% year-over-year, as well as momentum in live programming and original content.
