Big shock to Netflix!
The world’s richest man Alan Musk is once again in the headlines. This time a tweet became the reason for him, whose echo reached the stock market directly and it affected a legendary entertainment company Netflix. Netflix shares started falling after Musk’s social media post. One trading day passed after another and the company’s market value was reduced by about Rs 2 lakh crore.
Netflix lost billions of dollars
According to reports, on September 27, Netflix’s total market value was close to $ 514 billion, which declined to $ 489 billion by 3 October. That is, a total of 25 billion dollars i.e. about 2 lakh crore rupees. The beginning of this huge decline is said to be associated with Allen Musk’s tweet.
According to Yahoo Finance, Netflix’s market cap decreased by 7 billion in only one day after Musk’s tweet, which is believed to be the fastest decline in the last months. Last week, the company’s shares lost about 5 per cent, while in the same period, other tech stocks like Amazon and Meta saw a boom. On Friday, Netflix’s stock fell 1.2 per cent to close at $ 1,161, while it still saw a decline. Currently shares are trading on 1,153.32 USD. Looking at the last 5 days figure, the company’s stock has seen a decline of more than 4%.
(Photo- Alan Musk/x)
Why did Musk make such a tweet?
On 1 October Allen musk Wrote on X (East Twitter): Cancel Netflix for the Health of Your Kids. That is, cancel Netflix for the good of your children. There is a dispute behind this tweet of Musk, which is associated with Paranormal Park, an animated series of Netflix. The show was shut down in 2023, but Musk and some people accused Netflix that they were promoting transgender issues and ‘Vok Agenda’. Musk said that Netflix should be stopped for the mental health of children. Along with this, he also made some such posts in which Netflix was accused of showing the society from a one -sided perspective.
What did the director of the series say?
The show’s director Hamish Steel said on social media that he is getting scared because he is getting anti -hatred and anti -Jews comments. However, he also thanked those who supported him. At the same time, no official statement has come from Netflix in this whole matter. But this had a profound impact on the sentiments of the investors, which saw a sharp decline in the shares.
Financial results of the third quarter are coming
Let us know that Netflix is going to release its third quarter financial results on 21 October. It is estimated that this time the company’s revenue may be around $ 11.53 billion and EPS per share (EPS) around $ 6.87. The company has estimated the revenue between 44.8 to 45.2 billion for a year. Also, it is expected that by the year 2026, Netflix’s add revenue can reach 3 billion dollars.