---
title: "Downgrade, Steep Price-Target Cut Dings Netflix Stock"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/299461013.md"
description: "Wells Fargo downgraded Netflix to 'underweight' and cut its price target from $80 to $57, citing engagement concerns and lower expected margin expansion. Consequently, Netflix shares dropped 4.8% to $71.72, extending a three-day slide and dipping below the 60-day moving average. The stock is approaching two-year lows of $65.08 but shows an RSI of 35, suggesting potential for a short-term bounce despite being down 23% year-to-date."
datetime: "2026-09-18T14:16:45.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/299461013.md)
  - [en](https://longbridge.com/en/news/299461013.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/299461013.md)
generator: "portal-rs"
---

# Downgrade, Steep Price-Target Cut Dings Netflix Stock

Shares of **Netflix (NASDAQ:NFLX)** have dropped 4.8% to trade at $71.72 this morning, after Wells Fargo downgraded **the streamer** to "underweight" and readjusted their price target to $57 from $80. The analyst in coverage cited engagement trend worries and expectations for lower 2027 and 2028 margin expansion as **the company** prepares lesser-than-expected content for the remainder of 2026.

The shares are poised to stretch their three-day slide to four and have dipped below the 60-day moving average for the first time in a month, as the stock moves toward July 17 two-year lows of $65.08.

It's worth noting, however, Netflix stock sports a 14-day Relative Strength Index (RSI) of 35 — on the cusp of "oversold" territory, suggesting a short-term bounce may be in the cards. The shares are down 23% year to date.

Options are attractively priced at the moment. Netflix's Schaeffer's Volatility Index (SVI) of 32% stands higher than just 5% of all other readings from the past year. It's also worth noting, NFLX's **Schaeffer's Volatility Scorecard (SVS)** sits at a relatively high 93 out of 100, indicating Netflix stock has tended to exceed option traders' volatility expectations during the past year.

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## Related News & Research

- [Netflix Co-CEO Sold Shares Worth Over $1.7M](https://longbridge.com/en/news/305086276.md)
- [Bill Ackman Says Long-Term Investors Can Benefit From a Broken Market. Here's the Price I'd Pay for Netflix Stock.](https://longbridge.com/en/news/304469548.md)
- [Wells Fargo (WFC) Stock Could Be A Bargain After A 121% Run](https://longbridge.com/en/news/304803224.md)
- [Did Job Cuts Just Shift Wells Fargo's (WFC) Investment Narrative?](https://longbridge.com/en/news/304697146.md)
- [Netflix Trains 15 Nordic Women in Virtual Production](https://longbridge.com/en/news/305042310.md)

---
> **Disclaimer: This article is for reference only and does not constitute any investment advice.**