Wells Fargo downgrades Netflix stock, cuts price target to $57

Wells Fargo downgrades Netflix stock, cuts price target to $57

Fri, September 18, 2026 at 9:07 PM GMT+3 2 min read

• NFLX -4.67%

Wells Fargo downgraded Netflix stock to underweight from equal weight on Friday, cutting its price target to $57 from $80 — implying roughly 25% additional downside from Thursday's close.

Analyst Steven Cahall cited deteriorating viewer engagement as the central concern. According to CNBC, each subscriber watched an average of 1.6 hours per day in the first half of 2026, down roughly 8% on an adjusted basis from the comparable period in 2023. "Engagement trends look worrying to us," Cahall wrote in a note to clients.

The analyst said Netflix has been too focused on expanding into podcasts, games, and live TV at the expense of original programming, according to MarketWatch. "Netflix has lacked big original series and it's showing," Cahall wrote. "We see breakout hits as a must for the stock to work again."

Cahall pointed out that the top 100 titles account for about a fifth of all viewing hours, arguing that this concentration of attention is where genuine subscriber value originates. He said rival Disney looks like a "more hit-driven" streamer at present, according to Barron's.

Netflix stock fell 4.6% on Friday. Through Thursday's close the stock had shed roughly 20% in 2026, a trajectory that would make this its most painful calendar year since the 51% collapse it suffered in 2022.

Wells Fargo's call runs against the broader Wall Street consensus. LSEG data compiled by CNBC shows that among the 52 analysts who cover Netflix, 38 rate the stock a buy or strong buy.

The downgrade comes as investor sentiment around Netflix has shifted. Earlier this year, Bill Ackman's Pershing Square disclosed a new stake in Netflix totaling 3.15 million shares, returning to the streaming company after a loss-making investment in 2022. At the time, Pershing Square said it expected Netflix to grow revenue at a double-digit rate with content costs rising more slowly than revenue.

Barron's noted that Netflix had not returned a request for comment.