Wells Fargo downgraded Netflix to Underweight from Equal Weight and cut its price target to $57 from $80, implying roughly 25% downside from Thursday's close. Analyst Steven Cahall cited deteriorating viewer engagement, with subscribers watching an average 1.6 hours a day in the first half of 2026, down about 8% on an adjusted basis from the comparable 2023 period. He argued that Netflix's expansion into podcasts, games and live TV has diverted focus from original series capable of becoming major hits. Netflix shares fell 4.6% Friday and had lost roughly 20% in 2026 through Thursday's close. The call contrasts with LSEG data showing 38 buy or strong-buy ratings among 52 analysts. Bill Ackman's Pershing Square earlier disclosed a 3.15 million-share Netflix stake, saying it expected double-digit revenue growth while content costs rose more slowly than revenue.