Netflix shares fell nearly 5% on Elon Musk’s calls for a boycott. Despite this, the company forecasts revenue growth and strong Q3 results.
Netflix loses value due to Musk’s boycott
Netflix shares fell nearly 5% in a week, the biggest drop since April. The reason was Elon Musk’s calls for a boycott: he accused the platform of promoting transgender themes in children’s shows. His posts on X have been seen by more than 200 million subscribers.
Market grows, Netflix lags
The fall looks even more noticeable against the background of the general rise. Nasdaq and S&P500 added about 2%, Amazon and Meta increased, while Netflix lost capitalization.
Expectations from the report
Despite the information pressure, the company forecasts revenue of more than $11.5 billion and earnings of $6.87 per share in the third quarter. Revenue for the year is expected to be in the range of $44.8–45.2 billion. The advertising segment remains an important driver, which, according to management, will double to $3 billion next year.
Past crises
Netflix has already experienced similar attacks. In 2020, after the release of the French film Cuties, the hashtag #CancelNetflix gathered millions of posts, and the level of unsubscribes increased sharply. But a few months later, the company completely restored its position.
Analysts remain optimistic
Oppenheimer experts confirmed the “Outperform” rating and the target price of $1,425. They noted that in the third quarter, viewing time increased by 20% year-on-year, and live sports and new seasons of the series “Wednesday” and “Stranger Things” should strengthen audience engagement.
Related: Elon Musk’s Wealth Tops $500 Billion as Tesla Stock Soars Amid Political Turmoil
