Netflix stock dropped 5% on Friday as Wells Fargo analysts downgraded the streaming giant to underweight, citing worrying engagement trends and a 25% year-to-date decline in share value.
Wells Fargo downgraded Netflix to underweight and cut its price target to $57 from $80, citing an 8% drop in viewership time per subscriber per day and worrying engagement trends.
Netflix shares fell nearly 5% to close below $72 after Wells Fargo downgraded the stock to underweight. Analysts slashed the price target to $57 from $80, citing an 8% decline in daily viewership time per subscriber and a lack of compelling original content.
The downgrade was driven by concerns over declining user engagement, specifically an 8% drop in daily viewership time per subscriber, and a perceived lack of high-impact original content.