Netflix Stock Gets Downgraded by Wells Fargo on ‘Worrying’ Engagement Trends

Wells Fargo downgraded Netflix stock to "underweight" from neutral and cut its price target, citing "worrying" user engagement trends, including an 8% drop in viewership time per subscriber in the first half of the year.

Analysts attributed this to a lack of major original series, suggesting Netflix may need a "content spend reboot. " This downgrade contributed to Netflix shares dropping nearly 5% on Friday and a 25% loss year-to-date amidst concerns about slowing revenue growth.