Elon Musk Targets Netflix in Cultural Clash: “Cancel Netflix for Your Kids”
This week, Elon Musk encouraged his followers to stop using Netflix. This call was made in the midst of a dispute about an animated series and its producer.
Cancel Netflix for the health of your kids.
Musk
Conservative criticism of the Netflix animated series “Dead End: Paranormal Park,” which includes a transgender character, appears to be the root of the controversy. After two seasons, the show was terminated in 2023.
Netflix Defies Musk’s Boycott: Subscriber Numbers Hold Steady Amid Backlash
According to analysts, Netflix may not be as threatened by the backlash as Musk may have hoped. As of the fourth quarter of 2024, Netflix announced 301.63 million subscribers, the last time the company published the number before prioritizing revenue over user growth. With a market valuation of almost $490 billion, the company’s stock has increased by over 60% over the last 12 months.
Is that going to move the needle necessarily? … You’re going to see people sign up on the back of that to counter it. I don’t think this is a reason to sell the stock,
CNBC contributor Guy Adami
The remarks were made too late in the third quarter, according to Alicia Reese of Wedbush Securities, to have any significant effect on subscriber numbers. However, she stated that she thinks the negative reaction won’t have a significant effect and that any negative impacts will be compensated for by a rise in advertising revenue.
Why Isn’t Netflix Stock Falling Despite Online Discussions?
Although a day of news might lead Netflix’s stock to fluctuate, Tim Seymour of Seymour Asset Management stated that it is unlikely to have a significant effect. He went on to say that Netflix’s stock is ultimately too costly to be greatly impacted by online criticism.
We’ve had these moments in time where, whether it was an ad campaign that went wrong or whether it was some sense that a company was aligned in a particular political channel… I don’t think that that’s going to be the reason to sell Netflix here,
Seymour
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