‘Fast Money' traders talk Netflix shares dropping after Elon Musk tells people to cancel

Core Viewpoint - Elon Musk's tweet urging followers to cancel Netflix subscriptions due to a transgender character in the show "Dead End Paranormal Park" has led to a 2% drop in Netflix shares, highlighting the influence of social media on stock performance [1][2][3]. Group 1: Impact of Musk's Tweet - Musk's call to action resulted in a significant reaction from his followers, causing Netflix shares to decline by over 2% [1][2]. - The show "Dead End Paranormal Park," which features a transgender character, was canceled in 2023 after a 20-episode run, yet remains available on Netflix [3][4]. - Following Musk's comments, the creator of the show reported receiving anti-Semitic and homophobic harassment, prompting a social media break [4][5]. Group 2: Subscriber Analysis - Netflix has approximately 89 million subscribers in the US and Canada, with an estimated 40 million potentially identifying as Republican [5][6]. - If 10% of these subscribers were to cancel, it would represent about 2.5 to 4 million subscribers, which is only around 1% of Netflix's global subscriber base [6][7]. Group 3: Market Reactions and Valuation - Despite the potential impact of Musk's tweet, analysts suggest that the overall effect on Netflix's stock may be limited, as the company has not performed well since its earnings report [7][8]. - Concerns about Netflix's valuation have been raised, with some analysts expressing caution regarding the stock for the first time in years [8][9]. - Historical examples of boycotts and protests against companies indicate that while headlines can temporarily affect stock prices, the long-term impact may vary [12][13].