Wells Fargo Downgrades Netflix Over Slumping Viewership Trends

Wells Fargo downgraded Netflix to underweight from equal weight and reduced its price target from $80 to $57. The investment bank cited worrying engagement trends, estimating that viewership fell by 1.6 hours per subscriber per day in the first half of 2026, an 8% adjusted decline compared to the first half of 2023.

Wells Fargo analyst Steven Cahall noted that approximately 20% of hours come from the top 100 titles, which he believes drive member value and the cultural zeitgeist. Cahall warned that if the company attempts to recast itself as a broader content hub, it risks missing the watercooler originals that drive growth. He stated that breakout hits are a must for the stock to work again.

Netflix shares have dropped nearly 20% in 2026 and 28% over the past year. The company faces increased competition from Disney and Hulu. While most Wall Street analysts continue to maintain buy or strong buy ratings, the Wells Fargo downgrade highlights concerns that the streaming service must release major hit series and movies to recapture audience interest and recover its stock price.