Netflix Stock 2026: Wells Fargo Downgrades Netflix, Cuts Target to $57

Posted on September 19, 2026 at September 19, 2026 by Kuljeet Verma

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Netflix Stock Faces Pressure: Wells Fargo Says Comeback Is Unlikely Without Big Hits

Netflix stock came under pressure after Wells Fargo downgraded the streaming company, pointing to weaker viewer engagement and a lack of major original hits.

Wells Fargo moved its rating on Netflix from equal weight to underweight and reduced its price target from $80 to $57. The report highlighted concerns about Netflix’s recent viewing trends and content performance.

Viewer Engagement Is a Major Concern

According to Wells Fargo’s analysis, Netflix subscribers watched an average of around 1.6 hours per day during the first half of 2026. After adjustments for factors such as password-sharing changes and geographic mix, this was estimated to be about 8% below the comparable 2023 period.

The analysts also pointed to weaker viewing for Netflix’s top original programs.

Netflix Needs Another Big Hit

Wells Fargo analyst Steven Cahall argued that Netflix has not recently produced enough breakout original series to maintain its previous momentum.

The analysts also questioned Netflix’s expansion into areas such as gaming, documentaries, reality programming and video podcasts, saying the company may need to focus more strongly on major original entertainment hits.

Netflix Shares Fell

Following the downgrade, Netflix shares dropped sharply. The stock closed September 18 at around $71.79, down 4.7% for the day, according to market reports.

Wells Fargo’s view is an analyst assessment, not a guarantee about Netflix’s future. The analysts also acknowledged that a successful breakout show could change the company’s trajectory and that Netflix has a history of producing unexpected hits.

Main Points

Wells Fargo downgraded Netflix from equal weight to underweight.
Its price target was reduced from $80 to $57.
Analysts cited weaker viewer engagement.
First-half 2026 viewing was estimated to be about 8% below 2023 levels after adjustments.
Netflix’s top original programs have reportedly seen weaker viewing.
Wells Fargo says breakout original hits could be important for Netflix’s recovery.
Netflix shares fell about 4.7% on September 18, 2026.