Netflix is in the doldrums. A comeback is unlikely, Wells Fargo says

Wells Fargo downgraded Netflix to underweight from equal weight and cut its price target to $57 from $80, implying roughly 24% downside, arguing the streaming giant is losing momentum and could fall further. The firm flagged weakening engagement - estimating viewership dropped by 1.6 hours per subscriber per day in the first half of the year, an adjusted decline of about 8% versus the first half of 2023 - and warned that only a small share of hours (roughly 20%) come from the Top 100 titles that generate cultural buzz and member value. Rising competition from rivals such as Hulu and Disney compounds the problem, and Netflix is on track for its worst year since the 2022 collapse.

Wells Fargo’s stance is blunt: Netflix needs breakout TV or film hits to regain traction; without them, the plan to recast the service as a broader content hub risks diluting the “watercooler originals” that drive subscribers. The call departs from much of Wall Street, where a majority of analysts still rate the stock a buy. The bank’s downgrade and engagement metrics provide a concrete, data-driven rationale for a more pessimistic outlook on Netflix’s near-term growth and share-price resilience.