NFLX Stock Drops Over 14% This Month, Nears This Crucial Level From July — Here’s A Look At Some Key Street Takes

• Deutsche Bank upgraded Netflix to 'Buy' while lowering its price target to $95 from $100.
• Wells Fargo expects Netflix’s top-100 originals hours to fall 21% year-over-year in the second half of 2026.
• Evercore ISI remains bullish on NFLX after surveys showed multi-year highs in penetration rates in the U.S. and Japan.

Netflix Inc. (NFLX) stock is drawing attention after a 14% decline this month, as the shares move closer to the $65 level reached during July’s post-earnings sell-off, when the stock hit a near two-year low. 

The renewed pressure comes as analysts grow increasingly divided over whether weaker viewing engagement reflects a temporary content issue or a more persistent challenge for the streaming giant.

As of this writing, NFLX stock was up over 1% to around $70 in Tuesday’s premarket.

Deutsche Bank Bets On International Strength

Deutsche Bank on Tuesday upgraded Netflix to 'Buy' while lowering its price target to $95 from $100. The firm said the market’s “obsession” with U.S. time spent on Netflix overlooks the company’s larger total addressable market and “healthier” international engagement trends, according to TheFly.

Netflix’s international time spent has increased year over year in each of the past four six-month periods, Deutsche said. The firm believes this year’s weakness in U.S. viewing time “could simply be driven by less creative success.” 

It further pointed to Netflix’s “established competitive advantage and substantial lead” in international production and said the stock’s current valuation offers an attractive entry point.

Wells Fargo, HSBC Focus On Engagement

Wells Fargo downgraded Netflix to 'Underweight' from 'Equal Weight' and cut its price target to $57 from $80 earlier this month, according to TheFly. The firm said Netflix’s engagement trends “look worrying” and believes the company’s original-content slate is weaker in the second half of 2026 than in prior periods. 

Wells Fargo’s base case calls for Netflix’s top-100 originals hours to decline 21% year over year.

HSBC also downgraded Netflix to 'Hold' from 'Buy', cutting its target to $76 from $96. The firm said Alphabet Inc.’s (GOOG, GOOGL) YouTube is capturing an increasing share of viewers from Netflix. Per TheFly, HSBC cited YouTube reaching a record 14.2% share of U.S. TV time in July, while Netflix’s share fell to a multi-year low of 7.8%.

Evercore Sees Strength In Netflix’s Reach

Evercore ISI is taking a more constructive view. The firm raised its Netflix price target to $110 from $100 and maintained an 'Outperform' rating, according to TheFly. 

The firm said recent surveys in the U.S. and Japan showed multi-year highs in penetration rates, suggesting Netflix’s broader positioning remains strong despite concerns around viewing engagement.

Accuvest Global Advisors Chief Investment Officer Eric Clark, whose firm owns Netflix stock but has been reducing its position, told Bloomberg the company has become a “show-me story” because it needs more blockbuster, top-100-type shows. 

Fixing the engagement issue requires giving viewers more content worth talking about, said Clark, noting that rival streamers have been producing some of the shows attracting the most attention.

Netflix is scheduled to report fiscal third-quarter (Q3) results on Oct. 20, providing the next update on the company’s financial performance and outlook.

Retail Sentiment Around NFLX Stock

On Stocktwits, retail sentiment around Netflix stock remained ‘bearish’.

The streaming giant's shares are on track for a fifth straight weekly decline and their worst annual performance since 2022. 

The latest selloff has erased the gains from its August rebound and left the stock among the 50 worst performers in the S&P 500 this year, as concerns over slowing growth and intensifying competition continue to weigh on sentiment.

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So far this year, the stock has fallen around 24%%. In comparison, the Invesco NASDAQ 100 ETF (QQQM), which holds NFLX stock, has risen over 23% in the same period.

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