Netflix stock is headed for its fifth consecutive week of declines, with shares falling steadily throughout the month as investor concerns mount over the streaming giant's growth trajectory. The stock has declined 14% in September 2026, extending its year-long decline from the June 2025 record high of ₹134 to current levels near ₹68. Co-CEO Ted Sarandos confirmed these growth concerns at Bloomberg's Screentime conference on Thursday, stating that "Overall, we're not growing as fast as I want us to, and we're working on making that move faster." As per The Fly, Sarandos added that "We are, though, also doing things that create a lot of headwind to that number," raising additional questions about the company's near-term prospects. The slide came from an accumulation of bad news rather than one event, with viewership rising just 2% in the first half of 2026 - a critical metric that the stock is now trading on.
Netflix's disappointing showing at the Emmys last month highlighted the company's content challenges, with the streamer recording its lowest-converting and weakest performance at the TV awards show in a decade. The company won 16 awards on 111 nominations, finishing behind both Apple TV and HBOMax, and was nearly shut out of top categories like major comedy and drama. Co-CEO Ted Sarandos addressed these challenges at the Bloomberg conference, stating that Netflix is "not growing as fast as I want" and citing headwinds related to investments in live sports, which perform poorly on an ROI basis. However, live sports are good for signups and advertising, and the company expects to do more of it. The risk is that pushing into live sports, games, podcasts and reality shows is pulling focus from the blockbuster originals that made people open the app in the first place.
Netflix's market share continues to decline, with its share of viewing time in the U.S. falling by about one percentage point to 7.8%, as reported by HSBC. Investors increasingly blame competition from Apple, Amazon, and Alphabet for Netflix's challenges. YouTube captured a record 14.2% of US TV viewing in July, while Netflix held 7.9% in June. Amazon alone is valued near ₹2,50,000 crore, roughly 10 times Netflix's ₹25,500 crore market cap. The competitive pressure has led to guidance adjustments, with Netflix's next-quarter revenue growth forecasts slipping from 15% to 13% to 12% across 2026.
Wells Fargo lowered its rating on Netflix from equal weight to underweight and slashed its price target from ₹80 to ₹57, predicting a weak original content slate in the second half of the year and forecasting a 21% decline in hours watched for its top 100 original shows. HSBC followed with its own downgrade from buy to hold, citing trends that show Netflix has lost significant viewer share to YouTube over the last year. However, Deutsche Bank upgraded the stock to buy with a ₹95 target, citing 18% Asia-Pacific revenue growth. The stock faces key support at ₹61.29 and resistance at ₹89.10, with a potential downside target of ₹41 if key support levels are breached. Wells Fargo's ₹57 price target implies a downside of nearly 16% from current levels.
