Wolfe Research Downgrades Netflix, Citing Lack of Blockbuster Returns on Content Spending

Wolfe Research analyst Peter Supino downgraded Netflix's stock rating from 'Outperform' to 'Peer Perform' and removed the $95 price target. He noted that Netflix increased content spending by $3 billion over the past two years, yet user engagement in the US and Canada was flat or declined in the first half of 2026, with the lack of blockbuster content being the core reason for stalled subscription growth. Supino also lowered Netflix's 2027 revenue forecast to $56.27 billion and earnings per share estimate to $3.67.