{"id":5753,"date":"2026-09-22T15:15:22","date_gmt":"2026-09-22T15:15:22","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5753"},"modified":"2026-09-22T15:15:22","modified_gmt":"2026-09-22T15:15:22","slug":"netflix-stock-falls-as-hsbc-flags-youtube-competition-and-weak-engagement","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5753","title":{"rendered":"Netflix stock falls as HSBC flags YouTube competition and weak engagement"},"content":{"rendered":"
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Netflix stock NFLX fell 2% on Tuesday after HSBC downgraded the streaming company, citing growing competition from Alphabet\u2019s YouTube and concerns about near-term viewer engagement.<\/p>\n

HSBC lowered its rating on Netflix to Hold from Buy and cut its price target to $76 from $96. <\/p>\n

The firm said YouTube is taking an increasing share of US television viewing, making a near-term recovery in Netflix engagement less likely.<\/p>\n

YouTube gains ground on Netflix<\/h2>\n

HSBC identified YouTube\u2019s growing presence on television screens as a key concern for Netflix.<\/p>\n

According to HSBC, YouTube captured a record 14.2% share of US TV time in July, while Netflix\u2019s share declined to 7.8%, its lowest level in several years.<\/p>\n

The firm believes YouTube\u2019s momentum is increasingly coming at Netflix\u2019s expense as the Google-owned platform expands its presence in living rooms. <\/p>\n

The shift puts greater focus on Netflix\u2019s ability to maintain its share of viewing time as consumers divide their attention across streaming and other video platforms.<\/p>\n

HSBC\u2019s downgrade comes as Netflix faces broader concerns about engagement trends and the strength of its content offering.<\/p>\n

Wells Fargo also raises engagement concerns<\/h2>\n

HSBC\u2019s cautious view follows a downgrade from Wells Fargo last week. <\/p>\n

The firm cut Netflix to Underweight from its previous rating and lowered its price target to $57 from $80.<\/p>\n

Wells Fargo said Netflix\u2019s engagement trends look worrying and pointed to concerns about the company\u2019s original content slate in the second half of 2026.<\/p>\n

The firm\u2019s base case assumes Netflix\u2019s top 100 original hours will decline 21% year over year. <\/p>\n

Wells Fargo cited engagement risk as a reason for its downgrade.<\/p>\n

The two analyst calls focus on different aspects of Netflix\u2019s challenges. <\/p>\n

HSBC is concerned about YouTube gaining viewer share, while Wells Fargo expects a weaker original-content slate could make it more difficult for Netflix to improve engagement in the near term.<\/p>\n

BMO remains bullish on Netflix’s growth prospects<\/h2>\n

BMO Capital took a more positive view as analyst Brian Pitz maintained an Outperform rating and a $135 price target following proprietary consumer research.<\/p>\n

He believes investors have become \u201coverly negative\u201d about Netflix as growth in its US and Canada businesses slows.<\/p>\n

BMO surveyed 940 US consumers about their video-streaming habits. <\/p>\n

The survey found that 75% of respondents subscribe to Netflix, while 37% identified it as their most preferred streaming platform, twice the level of the nearest competitor.<\/p>\n

The firm also found that 76% of Netflix subscribers use the service multiple times per week. <\/p>\n

Consumers indicated plans to increase the amount of time they spend on video streaming services and subscribe to more platforms than they did last year.<\/p>\n

Pitz also sees Netflix\u2019s advertising business as a potential growth catalyst. <\/p>\n

He expects the company\u2019s advertising operations to eventually accelerate revenue growth in the US and Canada, while video games and other incremental revenue opportunities could provide additional growth.<\/p>\n

BMO said Netflix trades at 16.1 times fiscal 2027 estimated adjusted EBITDA, a 31% discount to its five-year average. <\/p>\n

The firm expects the company\u2019s advertising business to scale and support revenue growth.<\/p>\n<\/p>\n

The post Netflix stock falls as HSBC flags YouTube competition and weak engagement<\/a> appeared first on Invezz<\/a><\/p>\n

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Netflix stock NFLX fell 2% on Tuesday after HSBC downgraded the streaming company, citing growing competition from Alphabet\u2019s YouTube and concerns about near-term viewer engagement.HSBC lowered its rating on Netflix to Hold from Buy and cut its price target to $76 from $96. The firm said YouTube is taking an increasing share of US television…<\/p>\n","protected":false},"author":1,"featured_media":5754,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5753"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5753\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5754"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}