In the tense atmosphere ahead of the upcoming election, tech CEOs have largely refrained from taking public policy positions. This reluctance, initially seen as arrogance, now appears to be a well-considered move.
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The recent #CancelNetflix trend sparked by Netflix co-founder Reed Hastings’ public support for Kamala Harris highlights the potential backlash CEOs face when they enter politics.
Many leaders deliberately avoided political support before the elections.
This trend became evident when Netflix co-founder Reed Hastings publicly donated $7 million to Kamala Harris’ presidential campaign.
His optimism about Harris’ chances after Joe Biden’s withdrawal was clear.
“After a depressing debate, we’re back in the game,” Hastings noted on X, Elon Musk’s social network. Musk, in turn, quickly backed Trump after the failed assassination attempt on the former president.
In a less polarized era, Hastings’ support might have gone unnoticed. However, the current climate is highly tense, and MAGA supporters quickly launched a #CancelNetflix campaign on X.
Users began posting screenshots of their canceled subscriptions, citing Hastings’ donation as the reason. Former Trump attorney Jenna Ellis commented on X, “This is just the beginning,” signaling a larger backlash to come.
This situation illustrates why many CEOs have chosen to remain politically neutral.
Decline in CEO political activity
According to an analysis by Yahoo Finance, 98% of the 100 largest U.S. companies by size have refrained from financially supporting presidential candidates. Instead, they have directed their contributions to congressional candidates.
As elections approach, the political climate is heating up. Public opinion is deeply divided and any support expressed for one side or the other provokes significant negative reactions.
In such a situation, it seems prudent for CEOs to avoid any overt political involvement. However, this does not mean that they are completely handicapped. They can still indirectly support their preferred candidates through internal political committees.
What does this mean for stocks?
The backlash against Hastings’ approval had a tangible impact on Netflix’s stock.
Investors are grappling with the potential financial impact of canceling their membership due to the #CancelNetflix campaign.
Adding to the immediate financial concerns are worries about Trump’s growing popularity and his ability to directly attack the company in speeches.
For investors, the current volatility poses a dilemma. They must evaluate whether it makes sense to hold Netflix stock in the face of continued backlash from MAGA supporters. It’s a stark reminder of the risks associated with political support in an increasingly polarized society.
This article was translated from English using AI tools, then checked and edited by a local translator.
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