Netflix stock continued its downward streak for the third consecutive session, falling 3% to $1,163.21, marking a two-week low. The decline reflects a mix of political controversy, market uncertainty, and investor concerns over rising content costs.
Key Reasons Behind the Decline
Elon Musk’s Boycott Call
Billionaire Elon Musk amplified calls to “Cancel Netflix” after criticizing the platform’s support for the animated series Dead End: Paranormal Park, which he claimed promotes a pro-transgender message. The backlash triggered fresh selling pressure.
U.S. Government Shutdown
Broader market sentiment turned negative as the U.S. entered its first government shutdown in seven years. Investors are pulling back from risk assets, including tech and media stocks.
Tariff Concerns
President Donald Trump’s proposal to impose 100% tariffs on non-U.S. films has raised alarms across the entertainment industry. If implemented, Netflix could face higher production costs for international content.
Stock Snapshot – October 1, 2025
What Investors Should Watch
- Policy Clarity: Details on the proposed film tariffs and their legal basis
- Content Strategy: Netflix’s response to criticism and future programming decisions
- Market Volatility: Impact of U.S. shutdown and global trade tensions on tech stocks
- Earnings Outlook: Upcoming quarterly results may offer clarity on ad revenue and subscriber growth
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Final Takeaway
Netflix shares have dropped 3% to a two-week low, driven by political backlash, market uncertainty, and tariff fears. As investors await clarity on content strategy and trade policy, the stock remains under pressure.