Wells Fargo Downgrades Netflix Stock Amid Concerns Over Engagement Trends
On September 18, 2026, Wells Fargo downgraded Netflix stock to 'underweight' from neutral and cut its price target significantly. The downgrade was based on concerns about declining user engagement metrics, including an 8% drop in daily viewership time per subscriber compared to the same period last year. Analysts also pointed out a lack of major original series as a contributing factor. Netflix shares fell nearly 5%, closing just below $72 and extending their decline for the year with losses approaching 25%. The stock was among the top decliners in both the S&P 500 and Nasdaq. Despite this downgrade, most other analysts still view Netflix as a 'buy', though concerns about slowing revenue growth continue to weigh on investor sentiment. Wells Fargo warned that expanding into new entertainment formats like games could divert attention from core content strengths, potentially harming future performance.
Topics: Netflix stock performance stock downgrade user engagement trends Wells Fargo analysis