Musk’s Criticism of Netflix Sparks Market Value Decline
(MENAFN) US streaming powerhouse Netflix has experienced a decline of approximately $15 billion in its market capitalization after billionaire Elon Musk accused the service of promoting “woke bias” and encouraged his followers to terminate their subscriptions.
Shares of Netflix dropped 4.3% over the span of a day and a half, falling to $1,140 by midday Thursday.
This shift reduced the company’s market value from $498 billion on Wednesday to $483 billion, according to trading records.
The downturn followed Musk’s call for a boycott against Netflix in response to the animated series ‘Dead End: Paranormal Park’, which includes a transgender character.
Though the show was canceled in 2023 after two seasons, it remains accessible on the platform with a TV-Y7 rating, intended for children aged seven and older.
Musk has been a vocal critic of woke culture and LGBTQ themes, a stance many associate with his estrangement from his transgender child, Vivian Wilson.
Vivian has publicly condemned Musk for what she describes as an anti-trans campaign. In an interview last year, Musk referred to Wilson as “dead, killed by the woke mind virus.”
Netflix has yet to comment on Musk’s statements.
The streaming company has historically defended its controversial content on the grounds of free expression, notably in 2020 when the film Cuties sparked outrage over its sexualized portrayal of minors.
By the end of trading on Thursday, Netflix had regained some ground, closing at $1,161 per share with a market valuation of $493 billion.
Although the stock fell 4% over the week, it still shows a 30% increase since the beginning of the year.
Experts believe Musk’s criticism will have limited long-term impact, suggesting Netflix’s stock price remains too high to be significantly influenced by social media backlash.
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