Wells Fargo Downgrades Netflix Amid Concerns Over Viewership and Content Strategy
Netflix is facing a challenging year with declining viewership and rising competition from rivals like Hulu and Disney. Wells Fargo has downgraded the stock to underweight, lowering its price target significantly due to concerns over engagement trends and content strategy effectiveness. The investment bank noted that Netflix's daily viewing time per subscriber dropped by 1.6 hours in the first half of this year compared to early 2023. Analyst Steven Cahall emphasized the importance of hit original content for regaining audience interest, suggesting a potential rebound would depend on breakout successes. Despite Wells Fargo’s pessimistic outlook, most Wall Street analysts still maintain positive ratings for Netflix stock.
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