Netflix shares slid 5% after Wells Fargo downgraded the stock, citing weakening viewer engagement and a lack of breakout original content as major headwinds for the streaming giant.
Wells Fargo downgraded Netflix and cut its price target due to engagement concerns, causing a nearly 5% stock drop.
Netflix shares fell nearly 5% on Friday following a downgrade from Wells Fargo, which cited concerns over declining viewer engagement. Analyst Steven Cahall noted that a lack of hit original series and increased competition from platforms like YouTube are pressuring the streamer's performance.
Wells Fargo downgraded the stock due to 'engagement risk,' noting that Netflix has struggled to produce big original hits and is losing ground in viewership metrics compared to competitors like YouTube.