Wells Fargo downgraded Netflix (NFLX) to Underweight from Equal Weight. The bank cut its price target to $57 from $80, establishing one of the most bearish ratings on Wall Street.
Netflix shares fell approximately 4% in morning trading following the announcement. The broader Communication Services Select Sector SPDR Fund (XLC) traded slightly higher, indicating the negative sentiment was specific to Netflix.
Analysts cited concerns over a weak content slate and declining viewership for the second half of 2026. The firm projects a 4% year-over-year drop in viewership during that period.
This outlook contrasts with Evercore ISI, which maintains an Outperform rating and a $110 price target. Evercore highlights strong international growth and high household penetration in key markets as catalysts for the stock.