Netflix (NFLX) shares have fallen more than 10% from recent highs, wiping out roughly $15 billion in market value, after Elon Musk urged users on X to cancel their subscriptions over what he called “woke content.”

Musk’s post — “Cancel Netflix for the health of your kids” — quickly went viral, sparking a wave of subscription cancellations and social debate.

The stock now trades near $1,160, down from a recent high over $1,300, with technical warning signs beginning to appear.

John Rowland: “It Looks a Little Head-and-Shoulders-ish”

In last Friday’s Market on Close livestream, co-hosts John Rowland, CMT, and “Twitter Tom” shared their view:

While Tom noted that, “I don’t like buying names that are in the headlines for the wrong reasons,” John observed that NFLX “looks a little head-and-shoulders-ish to me.”

John explained that if Netflix breaks below the $1,140–$1,150 range, it could retest support at a gap near $1,000 — about a 10% move lower from current levels.

Beyond the Chart: Consumer Pressure

While Netflix remains the world’s leading streaming service — with what Rowland jokingly called “35 gazillion subscriptions” — he also pointed to a larger concern: consumer spending in a slowing economy:

“If we get into a recessionary period and consumers start feeling tight purse strings, this might be one of the first discretionary items to go.”

That concern aligns with broader macro signals investors are watching, from rising credit card delinquencies to weakening consumer sentiment data.

The Takeaway

Netflix’s sell-off is as much about sentiment as it is about fundamentals. With Elon Musk’s “Cancel Netflix” campaign amplifying social pressure — and technical patterns showing potential weakness — investors should watch closely how the $1,140–$1,000 support zone holds up.

Watch the Market on Close clip to catch the NFLX discussion →

• Stream the full Market on Close episode on YouTube.
• Track Netflix and Related ETFs on Barchart.