HSBC downgraded Netflix to a Hold from a Buy on September 22 and cut its price target on the stock to $76 from $96, arguing that YouTube is taking viewing share from Netflix and that a near-term recovery looks unlikely. The call followed a Wells Fargo downgrade on September 18, which cited weakening viewership and lowered its 2027 and 2028 operating margin forecasts for Netflix. According to Nielsen, YouTube viewing rose 6% from June, bringing its share of U.S. television viewing to a record 14.2% in July, while Netflix's share was 7.8%. Bloomberg reported in August that YouTube has discussed offering millions of dollars to popular creators to upload their videos to the site exclusively, exploring direct program financing and brand deals to keep creators from taking their videos to Netflix. Netflix shares are down roughly 20% this year, and hedge-fund ownership fell to 121 funds in Q2 from 144 in Q1 and 146 in Q4, while short interest recently rose 1.1% to 2.22%. Netflix reported exceeding 97 billion viewing hours in the first half of 2026, a record for a first half, supported by titles including His & Hers at 104 million views and Bridgerton Season 4 at 100 million views.
HSBC Holdings PLC
Wells Fargo & CompanyNetflix IncHSBC cut its price target to $76 from $96 and Wells Fargo lowered Netflix's 2027-2028 operating margin forecasts
