HSBC Downgrades Netflix to Hold, Cuts Price Target 21% to $76

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Summary · why it matters

HSBC downgraded Netflix to Hold from Buy and cut its price target 21%, to $76 from $96, sending the streaming giant's shares down more than 1% at Tuesday's open. Analyst Mohammed Khallouf said a near-term recovery in engagement looks unlikely, citing a declining reception for Netflix original content and YouTube's growing share of television viewing. YouTube reached a record 14.2% share of U.S. television viewing in July while Netflix accounted for 7.8%, and viewing hours for English-language programs on Netflix's weekly Top 10 lists fell roughly 17% year over year across July and August. HSBC raised its Netflix content spending estimates for 2027 and 2028 by about 2% while cutting EPS forecasts for those years by roughly 6% to 9%, noting YouTube is expected to distribute about $23 billion to creators in 2026 against roughly $20 billion of cash content spending at Netflix. The new target leaves only about 3% upside from current levels.

Impact on assets 3

Communication Services▼ · 1 stocks
Netflix Inc
NFLX
▼ NegativeCapitalrelevance

HSBC downgraded Netflix to Hold and cut its price target 21% to $76, citing weak engagement and YouTube's growing TV viewing share

Financials▲ · 1 stocks
HSBC Holdings PLC
HSBA
± MixedCapitalrelevance

HSBC is the analyst firm issuing the Netflix downgrade and price-target cut, but the news is not about HSBC's own business

Artificial Intelligence▲ · 1 stocks

Off-coverage companies 1

YouTube, LLCPrivate▲ Positive
Competitionrelevance

YouTube reached a record 14.2% share of U.S. TV viewing and is expected to distribute about $23B to creators in 2026, gaining share against Netflix

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