Netflix stock faces potential 20% downside as Wells Fargo cites an 8% decline in viewership and warns that diversifying into non-exclusive content may trigger higher subscriber churn.
Wells Fargo downgraded Netflix to Underweight and cut its price target to $57, citing declining viewership and engagement trends.
Wells Fargo analyst Steven Cahall downgraded Netflix to Underweight, slashing the price target to $57 amid concerns over declining viewership. The firm warns that a shift toward broader content strategies risks diluting the core premium formula that drives subscriber loyalty.
The downgrade was driven by a notable slowdown in platform engagement, specifically an 8% decline in average daily hours watched compared to the previous year.
Despite the recent bearish call from Wells Fargo, the consensus rating on Netflix remains a Moderate Buy with an average price target of approximately $96.