Core Insights - Netflix shares experienced a nearly 5% decline over the past week, marking the largest weekly drop since April 4, as a boycott campaign led by Tesla CEO Elon Musk gained traction [1][6] - The broader market rose approximately 2% during the same period, with Netflix lagging behind major tech competitors like Amazon and Meta [1] Boycott Campaign - Elon Musk has called for a boycott of Netflix, urging his 227 million followers on X to cancel their subscriptions, citing concerns over alleged transgender messaging in children's programming [2][3] - Musk's posts included messages like "Cancel Netflix for the health of your kids," amplifying the call for action against the streaming service [2] Upcoming Earnings Report - Netflix is set to report its third-quarter earnings later this month, but the impact of the boycott may be challenging to measure due to the company's decision to stop disclosing subscriber numbers quarterly [3] - In its last earnings report, Netflix exceeded Wall Street expectations and raised its full-year revenue outlook, although it did not meet the high performance standards set by analysts [3] Financial Projections - The company anticipates third-quarter revenue of $11.53 billion and earnings per share (EPS) of $6.87, both surpassing initial consensus estimates [4] - For the full year, Netflix projects revenue between $44.8 billion and $45.2 billion, driven by growth in its ad-supported tier, favorable foreign exchange rates, and consistent user engagement [4] Advertising Revenue Growth - Executives indicated that ad sales are expected to double to approximately $3 billion next year, supported by new seasons of popular shows and an expansion of live sports offerings [5] Historical Context - Netflix has previously faced social media backlash, notably in 2020 over the film "Cuties," which led to a significant increase in cancellations, although the company managed to recover without long-term damage to its subscriber base [6][7]