Netflix Double Downgraded at Huber Research Amid Engagement, Pricing Concerns

3-line summary

• Huber Research downgraded Netflix two notches to Underweight from Overweight, cutting its 12-month price target to $70 from $85, judging the stock has reached fair value, according to Investing.com. The report, dated Tuesday, October 13, cited engagement and pricing concerns.
• Global viewing hours rose 2% to 97 billion in H1 2026, but Huber estimated per-subscriber viewing fell about 5%; it viewed negatively Netflix's mid-July decision to cut its engagement report frequency from twice to once a year starting Q1 2027. On pricing, the firm said Netflix will need to be more cautious on further US price increases after hikes in 2025 and early 2026, leaning more on international markets.
• Huber also flagged reported plans for a 5% workforce reduction, Netflix's attempted acquisition of Warner Bros. Discovery's studio and streaming business about 10 months ago (with management reportedly still open to such deals), and the need for continued content investment amid competition from YouTube, Disney+ and Amazon Prime.

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