Netflix downgraded by Wells Fargo on weak engagement, content concerns

Retail & Consumer Media Edited by: Angela Harmantas 11:30 Fri 18 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Netflix Inc ( NASDAQ:NFLX XETRA:NFC ) View Price & Profile Netflix downgraded by Wells Fargo on weak engagement, content concerns Published: 11:30 18 Sep 2026 EDT Wells Fargo & Co (NYSE:WFC, XETRA:NWT) downgraded Netflix Inc (NASDAQ:NFLX, XETRA:NFC) to "underweight" from "equal weight" Friday, with analysts warning that weaker engagement and content could pressure margins and valuation. Wells Fargo cut its price target to $57, implying about 25% downside according to the note, and lowered its valuation multiple to 15 times forward earnings from 21 times. The shares traded at $71.97, down 4%, on Friday morning. Wells Fargo identified January's viewership report, due with fourth-quarter results, as a negative catalyst. Analysts estimated first-half viewing averaged 1.6 hours per subscriber daily, down 8% from 2023 after adjusting for a password-sharing crackdown and geographic mix. Viewing hours for the top 100 originals fell, while Netflix's share of US television viewing slipped below 8%, the note said. "Netflix has lacked big original series and it's showing," analysts wrote. Wells Fargo said Netflix appears to be broadening into gaming, documentaries, reality and video podcasts as it takes on YouTube, risking neglect of watercooler originals. "We see breakout hits as a must for the stock to work again," they wrote. The base case forecasts a 21% year-over-year decline in viewing hours for the top 100 originals in the second half, with elevated churn risk into 2027. Wells Fargo also trimmed its 2027 and 2028 earnings estimates to $3.77 and $4.52 a share, respectively. However, they flagged record content spending, a hard-to-forecast international slate and Netflix's history of unexpected hits. Continue reading