Netflix (NFLX) Stock Trades Down, Here Is Why

What Happened? Shares of streaming video giant Netflix (NASDAQ: NFLX) fell 5% in the afternoon session after Wells Fargo analyst Steven Cahall downgraded the stock from Equal Weight to Underweight and lowered his price target to $57 from $80. According to TipRanks, Cahall cited user engagement trends and a weaker second-half 2026 original-content slate as primary reasons for the rating change. The firm's base case projected a 21% year-over-year decline in viewing hours from the platform's top 100 originals. Additionally, Wells Fargo highlighted potential constraints on the company's operating margin expansion, pointing to headwinds for long-term profit growth and rising subscriber churn risk into next year.