Wells Fargo Downgrades Netflix to Underweight, Cuts Price Target to $57

GuruFocus·18 Sep 2026·

3▲0 ▼0Impact / 5

Summary · why it matters

Wells Fargo downgraded Netflix to Underweight from Hold and cut its price target to $57 from $80, sending shares down about 4% in Friday premarket trading. Analyst Steven Cahall cited weakening engagement and a softer content slate, warning that viewing trends could pressure future growth and margins. He expects hours viewed per subscriber to decline about 4% year over year in the second half of 2026, and sees viewing of Netflix's Top 100 original titles falling more than 20% from a year earlier during the same period. Cahall also expects softer content performance to constrain margin expansion in 2027 and 2028, potentially challenging a central pillar of the Netflix bull case. Netflix shares have already fallen about 20% year to date, and Wall Street remains broadly bullish on the stock, creating a sharp disagreement around the outlook.