Netflix Shares Slide Following Bearish Downgrade from Wells Fargo
Yahoo Finance ·
Shares of Netflix Inc. (NASDAQ:NFLX) declined 3.04% in premarket trading on Friday, September 18, 2026, after Wells Fargo lowered its rating on the streaming giant from Equal Weight to Underweight. Alongside the downgrade, the financial institution slashed its price target from $80 down to $57, pointing to diminishing viewership and a lackluster content lineup slated for the second half of 2026 as primary concerns. Furthermore, Wells Fargo reduced its earnings per share forecasts for 2027 and 2028 to $3.77 and $4.52, respectively, while lowering operating margin projections to 32.6% and 34.2%. The revised $57 valuation target is calculated using a 15x multiple on projected 2027 earnings, contracting from the previous 21x multiple, with the upcoming viewership report in January 2027 highlighted as a key negative catalyst.
AI 시장 분석
Netflix shares fell 3.04% in after-hours trading following Wells Fargo's downgrade of its investment rating and a $57 cut to its price target. Wells Fargo significantly lowered its future EPS and operating margin forecasts, citing declining viewership and weak content in the second half of 2026. Investors need a cautious approach while monitoring upcoming earnings reports and viewership metrics.
하락 영향
- Media — Wells Fargo downgraded Netflix's investment rating to Underweight and lowered its price target by $57, pointing to declining viewership and weak content, which increased downward pressure on the stock.
DYAX 전담 분석
Wells Fargo's downgrade stems from weakening content competitiveness and declining viewership for Netflix in the second half of 2026, leading to downward revisions of EPS forecasts for 2027 and 2028 respectively. The target valuation multiple was also reduced from 21x to 15x, increasing valuation pressure.
The bullish scenario involves proving a rebound in viewership through the box office success of upcoming original content, while the bearish scenario is facing additional downward pressure as poor performance is confirmed in the viewership report scheduled for January 2027. Key monitoring indicators are subscriber trends and operating margins.
AI가 생성한 분석으로 투자 자문이 아닙니다.
DYAX Investor Sentiment
Bullish (Long) 52% · Bearish (Short) 48%
439 participants
Related News
- Apple CEO John Ternus Marks iPhone 18 Debut
- Exxon’s 11 Million-Gallon Refinery Goes Dark. How High Can Midwest Gas Prices Go?
- Is Disney Stock A Bargain Or Just A Slower Grower?
- CNBC Host Says Berkshire Should Buy Iconic Consumer Brand After Stock Falls 75%
- Portfolio Fit: KCHP and Media Background of Jake
- Netflix Stock Downgraded by Wells Fargo Amid Troubling Engagement Metrics
