Published • loading... • Updated
Netflix Falls 4% as Wells Fargo Cuts Rating to Underweight With $57 Target; Disney Barely Budges
The bank said weaker engagement and rising competition could push Netflix shares 24% lower from Thursday’s close.
- Wells Fargo analyst Steven Cahall downgraded Netflix to Underweight from Equal Weight on Thursday, cutting the price target from $80 to $57 amid softening viewer engagement concerns.
- Netflix viewership fell by 1.6 hours per subscriber per day in the first half of this year. Cahall wrote, "Engagement trends look worrying to us," citing risks in missing "watercooler originals."
- Shares have fallen 22% YTD and closed down 1.4% Thursday. The Communication Services Select Sector SPDR ETF gained 0.26%, signaling investors view the selloff as stock-specific rather than sector-wide.
- Evercore ISI analyst Kutgun Maral maintains an Outperform rating with a $110 price target, contrasting sharply with Wells Fargo's bearish stance. The firms price the asset using different metrics: hours per subscriber versus household penetration.
- Market participants are evaluating whether Netflix can secure breakout hits to drive future value. Wells Fargo noted the company could rally if it recaptures audience interest through compelling content despite next year's slate risks.
Insights by Ground AI
Podcasts & Opinions
22 Articles
22 Articles
Wells Fargo advises underweight the value and foresees a fall of 24% for the action
·Madrid, Spain
Read Full ArticleCoverage Details
Total News Sources22
Leaning Left4Leaning Right1Center4Last UpdatedBias Distribution45% Left, 44% Center
Bias Distribution
- 45% of the sources lean Left, 44% of the sources are Center
45% Left
L 45%
C 44%
11%
Factuality
To view factuality data please Upgrade to Premium
