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

Wells Fargo recently downgraded Netflix stock to underweight from equal weight, lowering its price target to $57 from $80. Analyst Steven Cahall cited a drop in viewer engagement as the main issue, stating that subscribers watched an average of 1.6 hours per day in the first half of 2026, which is about 8% less than in 2023. Cahall also pointed out that Netflix has been focusing too much on podcasts, games, and live TV, potentially taking away from its original programming.

He emphasized that finding breakout hits is crucial for Netflix's stock to improve. Netflix's most successful titles account for about 20% of all viewing hours, making this area essential for subscriber value. Cahall noted that rival Disney appears to be a more hit-driven streaming service currently. Netflix's stock declined 4.6% on Friday, marking its most painful year since a 51% drop in 2022.

This downgrade contrasts with the general Wall Street view, as 38 out of 52 analysts covering Netflix have rated the stock as a buy or strong buy.