Netflix Falls 4% as Wells Fargo Cuts Rating to Underweight With $57 Target; Disney Barely Budges
The bank said weaker engagement and rising competition could push Netflix shares 24% lower from Thursday’s close.
- Wells Fargo analyst Steven Cahall downgraded Netflix to Underweight from Equal Weight on Thursday, cutting the price target from $80 to $57 amid softening viewer engagement concerns.
- Netflix viewership fell by 1.6 hours per subscriber per day in the first half of this year. Cahall wrote, "Engagement trends look worrying to us," citing risks in missing "watercooler originals."
- Shares have fallen 22% YTD and closed down 1.4% Thursday. The Communication Services Select Sector SPDR ETF gained 0.26%, signaling investors view the selloff as stock-specific rather than sector-wide.
- Evercore ISI analyst Kutgun Maral maintains an Outperform rating with a $110 price target, contrasting sharply with Wells Fargo's bearish stance. The firms price the asset using different metrics: hours per subscriber versus household penetration.
- Market participants are evaluating whether Netflix can secure breakout hits to drive future value. Wells Fargo noted the company could rally if it recaptures audience interest through compelling content despite next year's slate risks.
11 Articles
11 Articles
24/7 Wall St.
BizTocNetflix Falls 4% as Wells Fargo Cuts Rating to Underweight With $57 Target; Disney Barely Budges
Wells Fargo just handed Netflix one of the street's most bearish ratings while a rival analyst pushed a price target nearly double that level, leaving investors to figure out which firm is reading the audience right before earnings arrive.
A single bank is going against all of Wall Street. Wells Fargo downgrades Netflix to "underweight" and lowers its target price to $57, which means a further drop of 20 percent. Of 52 analysts, the bank is the only one with a sell recommendation. Netflix shares have already fallen nearly 24 percent in 2026 and 42 percent over a year. If the trend continues, the company risks its worst stock market year since 2022, according to CNBC, when the stoc…
(Teleborsa) - Netflix is moving towards a sharp drop in session, with shares dropping over 4% in the Wall Street pre-market after Wells Fargo reduced its recommendation from equal Weight to underweight...
VG
E24Wells Fargo downgraded the stock on Friday and believes the streaming giant's margin improvement will slow over the next two years.
Coverage Details
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
