Stock Market Today, Sept. 18: Netflix Falls on Analyst Downgrade and Slashed Price Target
Netflix (NASDAQ:NFLX), a global subscription streaming platform with live content and originals, closed at $71.79, down 4.67%. Wells Fargo (NYSE:WFC) downgraded the stock and cut its target, citing weaker engagement and content concerns. Investors are next watching for earnings, second-half content, and margin trends.
Trading volume reached 87.2 million shares, coming in about 116% above its three-month average of 40.4 million shares. Netflix IPO'd in 2002 and has grown 59,888% since going public.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) closed at 7,650.50, up 0.17%, while the Nasdaq Composite (NASDAQINDEX:^IXIC) finished at 26,523, up 0.39%. Among entertainment streaming services and subscription video-on-demand peers, Walt Disney (NYSE:DIS) closed at $102.67, down 2.54%, and Comcast (NASDAQ:CMCSA) closed at $22.74, down 0.74%, showing softer trading across the group.
What this means for investors
On Friday, Wells Fargo analyst Steven Cahall downgraded Netflix to "underweight" and reduced the price target from $80 to $57, according to reports. That implies another 20% downside for the stock even after today's slide.
The analyst pointed to weaker engagement with concerns that Netflix hasn't recently produced highly popular original content. Investors also worry that increased live-content spending will pressure margins.
Investors should note, though, that another analyst countered with a $110 stock price target. Evercore ISI's Kutgun Maral focused on international penetration.
The next catalyst for Netflix stock may be its earnings report on Oct. 20, when management guidance may help determine which view is more accurate.
Should you buy stock in Netflix right now?
Before you buy stock in Netflix, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Netflix wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $406,141!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,347,745!*
Now, it’s worth noting Stock Advisor’s total average return is 940% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of September 18, 2026.
Wells Fargo is an advertising partner of Motley Fool Money. Howard Smith has positions in Netflix and Walt Disney. The Motley Fool has positions in and recommends Netflix and Walt Disney. The Motley Fool recommends Comcast. The Motley Fool has a disclosure policy.
Recommended Articles
