Wells Fargo Downgrades Netflix Stock to Underweight, Cuts Price Target
On September 18, 2026, Wells Fargo downgraded its rating for Netflix stock from equal weight to underweight and reduced the price target from $80 to $57. Analyst Steven Cahall cited declining viewer engagement as a key concern, noting that average daily viewing time per subscriber dropped by about 8% in the first half of 2026 compared to the same period in 2023. Cahall also criticized Netflix for prioritizing expansion into podcasts, games, and live TV over original programming. He emphasized the need for breakout hits to revive investor confidence in the stock. The downgrade caused Netflix's shares to fall by 4.6% on Friday, with a year-to-date decline of roughly 20%, marking one of its worst years since 2022. Despite this negative outlook from Wells Fargo, most Wall Street analysts still maintain positive ratings for Netflix. Bill Ackman’s Pershing Square recently disclosed a new stake in the company after exiting it at a loss two years earlier.
Topics: analyst report Netflix stock downgrade viewer engagement Wells Fargo