Shares for the streaming giant Netflix fell 5 percent last week after Wells Fargo downgraded its stock due to worrying trends in user engagement.
\n\nThe report, titled “Engagement Risk,” from Wells Fargo analyst Steven Cahall alleged that the streamer’s user engagement had fallen behind in the Nielsen Gauge, adding that the top 100 titles saw year-over-year slight decline.
\n\n“Engagement trends look worrying to us,” the report stated, per The Hollywood Reporter (THR). “TLDR: NFLX has lacked big original series & it’s showing.”
\n\nWells Fargo speculated that the engagement drop may stem from Netflix attempting to compete with YouTube by investing in podcasts, gaming, and other forms of diverse content. To turn the trends around, the report said that Netflix will be making “tougher choices ahead.”
\n\n“Options incl a content spend reboot (takes time), licensing 3P content incl live sports (e.g. from FOXA, NBCU) and/or M&A…so a messier NFLX story,” the report said.
\n\n“Where we could be wrong: 1) Content spend is at record levels — NFLX has time & again delivered unexpected break-out hits; 2) The int’l slate is harder to forecast & could be potential upside to our hrs est; & 3) NFLX is great value so may still…
Original source: https://www.breitbart.com/tech/
