Wolfe Research downgraded Netflix, citing a decline in engagement and a loss of its creative spark. Analyst Peter Supino believes that despite increased investment, engagement in the US and Canada has stagnated or decreased. He pointed to YouTube's growing TV viewing share and increased spending by competitors like Amazon and Apple. Supino highlighted a lack of major new hits as a key factor in Netflix's stalled subscriber growth, with no significant successor to popular shows like Stranger Things. The company's chief content officer was recently replaced, indicating a push for more desirable content. While Netflix's valuation appears inexpensive, Supino sees limited upside without the creation of global hits. He also lowered his revenue and earnings forecasts for 2027. Consequently, his rating was reduced from "Outperform" to "Peer Perform," and his price target was removed. This downgrade contrasts with the predominantly positive ratings from other analysts.