Netflix Expected a ‘KPop’ Rally. Elon Musk and Tariffs Got In the Way

Netflix Inc. shares romped through the first half of the year on strong earnings and ambitious growth plans. But that rally is now stalled as a pair of unusual risks has investors questioning the company’s elevated valuation.

The streaming pioneer’s stock was the fourth-best performer in the Nasdaq 100 Index in the first six months of 2025, soaring 50%, and the second half of the year seemed to get off to a good start with the June 20 release of the animated musical KPop Demon Hunters. The movie has been a huge hit, becoming Netflix’s most-watched original film. However, the shares are down 9% since the end of June, while the Nasdaq 100 Index is up almost 11% over the same period.