Wells Fargo downgrades Netflix stock, cuts price target to $57

Wells Fargo downgraded Netflix stock to underweight from equal weight on Friday, cutting its price target to $57 from $80 — implying roughly 25% additional downside from Thursday's close. Analyst Steven Cahall cited deteriorating viewer engagement as the central concern. According to CNBC, each subscriber watched an average of 1.6 hours per day in the first half of 2026, down roughly 8% on an adjusted basis from the comparable period in 2023. "Engagement trends look worrying to us," Cahall wrote in a note to clients. The analyst said Netflix has been too focused on expanding into podcasts, games, and live TV at the expense of original programming, according to MarketWatch. "Netflix has lacked big original series and it's showing," Cahall wrote.