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Netflix is in the doldrums. A comeback is unlikely, Wells Fargo says

CNBC • September 18, 2026 • business

Key Points:

Wells Fargo downgraded Netflix to underweight from equal weight and cut its price target from $80 to $57, signaling a potential 24% decline from recent levels due to concerns over declining viewer engagement.
Netflix's shares have dropped nearly 20% in 2026 and about 38% over the past year, as the company faces decreasing viewership and intensified competition from Hulu, Disney, and others.
Viewership per subscriber fell by 1.6 hours per day in the first half of 2026, representing an 8% decline compared to the same period in 2023, with about 20% of viewing hours concentrated in the top 100 titles.
Wells Fargo emphasizes that Netflix needs breakout hit TV shows and movies to regain audience interest and improve stock performance, warning that missing "watercooler originals" could undermine its strategy to become a broader content hub.
Despite Wells Fargo's bearish outlook, the majority of Wall Street analysts remain optimistic, with 38 out of 52 analysts maintaining buy or strong buy ratings on Netflix shares.

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