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Netflix stock downgraded by HSBC and Wells Fargo over falling viewer engagement.

Market News
22 Sep 2026
Andrew Wynn
View Source
Bearish
Netflix stock downgraded by HSBC and Wells Fargo over falling viewer engagement.

HSBC and Wells Fargo have downgraded Netflix stock due to declining subscriber engagement and an 8% drop in viewership time. Despite a recent 2.19% stock gain, Netflix shares have fallen over 40% in the past year amid strong competition and weaker original content. Analysts expect positive Q4 2026 earnings with EPS of $0.82 and revenue of $12.88 billion. Investors await the October 20 earnings report for further direction.

Following the recent downgrades by HSBC and Wells Fargo, Netflix shares are trading slightly down on Pluang, priced at USD 72.97 with a 0.53% decrease as of Sep 22, 2026 20:31 WIB. The stock remains well below its 52-week high of USD 124.13, reflecting ongoing market caution. Investor activity on Pluang shows a balanced sentiment with 43% selling and 57% buying, and a typical hold time of 124 days.

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Netflix has $27B available to repurchase about 8% of its shares, signaling strong buyback plans.

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Wells Fargo downgrades Netflix on weak viewer engagement and content concerns, cutting price target by 25%.

Wells Fargo downgrades Netflix on weak viewer engagement and content concerns, cutting price target by 25%.

Wells Fargo downgraded Netflix from "equal weight" to "underweight" citing weaker viewer engagement and concerns over content quality, which could pressure margins and valuation. The price target was cut to $57, implying a 25% downside from current l...

Analyst Insights
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Netflix shares drop 4% after Wells Fargo cuts rating to underweight with $57 target ahead of earnings.

Netflix shares drop 4% after Wells Fargo cuts rating to underweight with $57 target ahead of earnings.

Netflix stock fell 4% following Wells Fargo's downgrade to underweight and a price target cut from $80 to $57, citing concerns over declining viewer engagement and a weaker content slate in the second half of 2026. This contrasts with Evercore ISI's ...

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