Netflix shares plunged more than 5% this morning after Wells Fargo downgraded the stock to underweight and slashed its price target to $57 a share, from $80.

"Engagement trends look worrying to us," wrote a team of analysts led by Steven Cahall, who estimated that viewership in the first half of 2026 was down 8% from the same period in 2023. "TLDR: [Netflix] has lacked big original series & it's showing."

The team noted that Netflix's platform highlights "gaming, docs, reality & video podcasts." But, they added, "if the opportunity is to recast NFLX into a broader content hub, the risk is missing the watercooler originals. We see a breakout hit as a must for the stock to work again."