NFLX Stock Heads For 4-Day Slide, Extends September Losing Streak After Wells Fargo Flags “Worrying” Engagement In Downgrade

Wells Fargo downgraded Netflix to 'Underweight' from 'Equal Weight' and cut its price target to $57 from $80.

• The firm said Netflix’s original content slate could weaken in the second half of 2026.
• Its base case called for a 21% year-over-year decline in hours from its top 100 originals.
• Broader Wall Street remains more positive, with NFLX stock’s 12-month average price target near $93.88.

Netflix (NFLX) shares dropped in early morning trade on Friday, bucking broader market strength, after Wells Fargo downgraded the stock, citing “worrying” engagement trends. 

NFLX stock fell nearly 3% in premarket trading Friday, putting the stock on track for a fourth straight session of losses and a third consecutive weekly decline in September. 

Netflix was also the top trending ticker on Stocktwits at the time of writing, while retail sentiment around the shares improved to ‘neutral’ from ‘bearish’ territory over the past day.

Wells Fargo Downgrades NFLX Stock

Wells Fargo cut Netflix to 'Underweight' from 'Equal Weight,' lowering its price target to $57 from $80, according to a note cited by TheFly. The firm's core concern centers on the streaming platform’s content. 

It said it believes Netflix's originals slate looks weaker in the second half of 2026 compared to prior periods, with its base case projecting the company's top 100 originals hours will fall 21% year-over-year. Wells cited that engagement risk as the primary driver behind the downgrade.

NFLX stock has fallen nearly 30% year-to-date, and almost 40% in the last 12 months. Wells Fargo's new $57 target implies further downside of roughly 25% from current levels.

Wall Street Still Sees Upside For Netflix

The 12-month average price target on NFLX stock sits around $93.88, according to Koyfin data, implying a potential upside of nearly 25% from current levels. 

Out of the 51 analyst covering the stock, 35 gave the stock a ‘Strong Buy’ or ‘Buy’ rating, while the other 16 recommended ‘Hold’ with none recommending ‘Sell’ or ‘Strong Sell’. 

That view was reinforced earlier this week , when Evercore ISI on Monday raised the firm's price target on Netflix to $110 from $100 and kept an ‘Outperform’ rating on the shares. According to firm, Netflix’s position showed signs of strength based on recent surveys in the U.S. and Japan indicating multi-year high penetration rates. 

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