It has not been a good year for Netflix , and Wells Fargo thinks it’s likely to plunge deeper into the red. The investment bank downgraded the streaming giant to underweight from equal weight. It also lowered its price target on shares to $57 from $80, implying 24% downside from Thursday’s close. “Engagement trends look worrying to us,” analyst Steven Cahall said Friday in a note to clients. “If the opportunity is to recast NFLX into a broader content hub, the risk is missing the watercooler originals.” Shares of Netflix have fallen nearly 20% in 2026 and 28% over the past year, as the company contends with slumping viewership and rising competition from rivals such as Hulu and Disney.Through Thursday’s close, Netflix was headed for its worst year since 2022, when it plunged 51%. NFLX 1Y mountain Shares are down about 38% over the past 12 months. Netflix viewership fell by 1.6 hours per subscriber per day in the first half of this year, per Wells Fargo. That puts viewership rates down roughly 8% on an adjusted basis versus the first half of 2023, according to the bank’s estimate. “As for quality engagement, ~20% of hrs come from the Top 100 titles & we think this is where much of the zeitgeist lives & member value is driven,” Cahall noted. To be sure, Netflix could rally again if it can release hit TV series and movies to recapture audience interest, according to Wells Fargo. “We see breakout hits as a must for the stock to work again,” Cahall wrote. Wells Fargo’s call goes against consensus on Wall Street. Of the 52 analysts covering Netflix, 38 have a buy or strong buy rating on the stock, LSEG data shows.
