Netflix Faces Growing YouTube Threat As Viewer Share Hits Multi-Year Low, HSBC Says — Wells Fargo Flags Engagement Risk

Analysts raised concerns around Netflix’s engagement trends as YouTube expands its living-room presence and Netflix heads into a potentially weaker second-half content slate.

• YouTube captured a record 14.2% of U.S. TV time in July, while Netflix fell to a multi-year low of 7.8%, HSBC said.
• HSBC cut Netflix to ‘Hold’ from ‘Buy’ and lowered its target to $76 from $96.
• Wells Fargo expects Netflix’s top 100 original hours to fall 21% year over year in the second half of 2026, per TheFly.

HSBC downgraded Netflix Inc. (NFLX) shares on Tuesday, citing that Alphabet Inc.’s (GOOG, GOOGL) YouTube is taking an increasing viewer share from the streaming company and that a near-term recovery in engagement is unlikely.

According to TheFly, HSBC downgraded NFLX to ‘Hold’ from ‘Buy’ and cut its price target to $76 from $96.

Netflix Losing Out To YouTube

HSBC pointed to YouTube’s expanding presence on television screens as a central concern. YouTube captured a record 14.2% share of U.S. TV time in July, according to the firm, while Netflix’s share dropped to 7.8%, its lowest level in several years.

HSBC believes YouTube’s momentum is increasingly coming at Netflix’s expense as the Google-owned platform builds a larger living-room audience, per TheFly.

Wells Fargo Also Flags Engagement Risk

HSBC’s downgrade follows another cautious call from Wells Fargo last week when the firm downgraded Netflix to 'Underweight' and cut its price target to $57 from $80, saying the company’s engagement trends “look worrying,” according to TheFly.

The firm sees Netflix’s original content slate as weaker in the second half of 2026 than in prior periods. Its base case assumes the company’s top 100 original hours will decline 21% year over year, citing engagement risk as the reason for the downgrade.

Taken together, the two analyst calls highlight separate but related pressures: HSBC is focused on viewer share shifting toward YouTube, while Wells Fargo is concerned that a softer slate of originals could make it harder for Netflix to improve engagement in the near term.

The latest analyst downgrades now put Netflix’s engagement trends and its ability to defend viewing time against YouTube increasingly in focus.

Retail Sentiment Around NFLX Stock

Retail sentiment around Netflix remained 'bullish' on Stocktwits amid 'high' message volume.

So far this year, the stock has fallen over 19%. In comparison, the Invesco NASDAQ 100 ETF (QQQM), which holds NFLX stock, has risen nearly 21% over the same period.

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