{"id":852809,"date":"2026-09-19T03:14:23","date_gmt":"2026-09-19T03:14:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/852809\/"},"modified":"2026-09-19T03:14:23","modified_gmt":"2026-09-19T03:14:23","slug":"netflix-stock-falls-after-wells-fargo-downgrade-due-to-engagement","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/852809\/","title":{"rendered":"Netflix Stock Falls After Wells Fargo Downgrade Due to Engagement"},"content":{"rendered":"<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t<a href=\"https:\/\/www.hollywoodreporter.com\/t\/netflix\/\" id=\"auto-tag_netflix_1\" data-tag=\"netflix\" rel=\"nofollow noopener\" target=\"_blank\">Netflix<\/a> shares fell nearly 5 percent on Friday after Wells Fargo downgraded its stock and price target, citing concerns over user engagement.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThe report, by Wells Fargo analyst Steven Cahall, was titled \u201cEngagement Risk,\u201d and noted that the trends for viewer engagement were concerning, with the streamer falling in the Nielsen Gauge and the top 100 titles also seeing a slight year-over-year decline.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cEngagement trends look worrying to us,\u201d the report states. \u201cTLDR: NFLX has lacked big original series &amp; it\u2019s showing.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tAs for what\u2019s causing the drop in engagement, Wells Fargo speculates that Netflix is taking the fight to YouTube and may be at fault, citing increased investment in video podcasts, creator deals, games and other genres, with the streamer leaning more into content diversity.<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tThe company can turn things around, but the bank sees \u201ctougher choices ahead.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\t\u201cOptions incl a content spend reboot (takes time), licensing 3P content incl live sports (e.g. from FOXA, NBCU) and\/or M&amp;A\u2026so a messier NFLX story,\u201d Cahall writes. \u201cWhere we could be wrong: 1) Content spend is at record levels \u2014 NFLX has time &amp; again delivered unexpected break-out hits; 2) The int\u2019l slate is harder to forecast &amp; could be potential upside to our hrs est; &amp; 3) NFLX is great value so may still have pricing power\/margins beyond our expectations.\u201d<\/p>\n<p class=\"paragraph larva \/\/  a-font-body-m     \">\n\tIn other words, a recalibration of where it spends its content, cutting sports deals with third parties \u2026 or even another deal after the Warner Bros. deal fell through.<\/p>\n","protected":false},"excerpt":{"rendered":"Netflix shares fell nearly 5 percent on Friday after Wells Fargo downgraded its stock and price target, citing&hellip;\n","protected":false},"author":2,"featured_media":852810,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,217],"class_list":["post-852809","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-netflix"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/852809","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=852809"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/852809\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/852810"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=852809"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=852809"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=852809"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}