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Wells Fargo Downgrades Netflix to Underweight, Cuts Target to $57

By Drooid · Sep 19, 2026, 2:31 PM UTC · How we work

Summary

Wells Fargo Downgrades Netflix

Wells Fargo downgraded Netflix to Underweight and cut its price target to $57 from $80 on September 18, 2026.
Netflix shares fell about 4.8% to $71.66, reaching a low of $70.11 after the downgrade.
Wells Fargo projects subscriber viewing hours to decline 4% YoY in H2 2026, with top-100 originals down over 20% YoY.
Wells Fargo cut 2027-2028 operating margin forecasts to 32.6% and 34.2% and EPS estimates to $3.77 and $4.52.

Summary

Netflix Expands Content

Netflix is expanding its catalog with podcasts, live television, and video-game content to address engagement declines.
The streamer will test licensing third-party content, including live sports from partners such as FOXA and NBCU.
Netflix will end semi-annual viewership reports, moving to annual disclosures starting in 2027.
Analysts say Netflix could raise subscription prices and increase ad inventory to boost revenue.

History

Historical Context

In July 2011 Netflix raised its streaming price by $2.99 and announced a Qwikster split, prompting a 2% share dip and about 800,000 subscriber cancellations. The backlash forced Reed Hastings to reverse the plan and keep DVD and streaming under one brand, shaping the company’s later cautious pricing and ad-tier experiments. That episode set a precedent for Netflix’s careful rollout of new tiers in 2022-2026.

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Wells Fargo Downgrades Netflix

Wells Fargo downgraded Netflix to Underweight and cut its price target to $57 from $80 on September 18, 2026.
Netflix shares fell about 4.8% to $71.66, reaching a low of $70.11 after the downgrade.
Wells Fargo projects subscriber viewing hours to decline 4% YoY in H2 2026, with top-100 originals down over 20% YoY.
Wells Fargo cut 2027-2028 operating margin forecasts to 32.6% and 34.2% and EPS estimates to $3.77 and $4.52.

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