Wells Fargo Downgrades Netflix Stock Amid Concerns Over Declining Viewership
Senior Wells Fargo analyst Steven Cahall downgraded Netflix (NFLX) to 'Underweight' and cut his price target to $57, suggesting a potential further decline of about 20%. The downgrade comes amid concerns over slowing platform usage. In the first half of 2026, average daily viewing hours dropped by approximately 8% compared to the same period in 2023. Cahall highlighted that top-tier content is crucial for customer retention and warned of a potential steeper decline in viewership for original titles later this year. He also expressed concerns about Netflix's strategy to expand into new areas like YouTube, video games, and live sports potentially diluting its core offering and subscriber loyalty. Despite the downgrade, other Wall Street analysts maintain a 'Moderate Buy' consensus rating on NFLX with an average price target of $96, indicating potential upside. Cahall emphasized that breakout hits will be essential for Netflix's stock to recover.
Topics: Netflix Stock downgrade Streaming industry Wells Fargo