Wells Fargo Downgrades Netflix to Underperform as Slowing Engagement Triggers Divergent Wall Street Views

Netflix shares traded near two-year lows around $71.80 to $73.36, down over 20% year-to-date and 40% over the past year. Wells Fargo downgraded the stock to Underweight/Underperform and cut its price target from $80 to $57, warning of decelerating subscriber engagement and a thin content pipeline. The move creates sharp Wall Street division: 24/7 Wall St. maintains a $154.73 target, while consensus stands at Moderate Buy with an average $95.23 target. Netflix continues to guide full-year 2026 revenue between $51.0 billion and $51.4 billion, supported by an operating margin of 31.5% and a $4.7 billion Q2 share repurchase.