Netflix stock faces downward pressure amid declining viewer engagement

Wells Fargo has downgraded Netflix stock to "Underweight" and slashed its price target to $57, citing weak viewer engagement and a weakening slate of upcoming original content.

The bank noted an 8% drop in average viewership compared to 2023, alongside a decline in viewing hours for top original titles and a drop in Netflix’s share of the US TV market to below 8%.

It also projects a 21% decline in viewership for the top 100 original titles during the second half of the year, coupled with rising risks of subscriber cancellations through 2027—factors likely to weigh on earnings and the stock's valuation.