Netflix stock is getting shredded — and Google's YouTube may be the reason

Netflix stock is getting shredded — and Google's YouTube may be the reason

Brian Sozzi · Executive Editor

Wed, September 23, 2026 at 3:30 PM GMT+3 2 min read

While Netflix (NFLX) execs sit in their ivory tower licking their wounds for not closing the deal for Warner Bros. (WBD) — which will now officially end up going to Paramount (PSKY) — investors are left with uncertainty on the streamer's future growth.

And they are continuing to stampede for the exits.

Netflix stock is down 11% in September, per Yahoo Finance AlphaSpace data, bringing the year-to-date drop to 23%. The S&P 500 (^GSPC) is up 13% on the year.

(NFLX )

Go deeper with AlphaSpace

72.16 -1.20 (-1.64%)

At close: September 22 at 4:00:00 PM EDT

NFLX ^GSPC

Although Wells Fargo's cautious comments on Netflix have gotten attention this week, it's a new note from HSBC of all places that we think is of greater concern to the remaining Netflix bulls.

"YouTube has been rapidly expanding its living room footprint, having captured a record 14.2% share of US TV time (+80bps year over year) this July," HSBC analyst Mohammed Khallouf wrote. "This momentum is increasingly coming at the direct expense of Netflix as its share fell to a multi-year low of 7.8% (-100bps year over year). YouTube has been benefiting, in our view, from a declining reception to NFLX's original content. Near-term recovery in engagement looks unlikely."

Khallouf said YouTube is tightening its grip on top creators by offering direct financing, greater payouts, and priority marketing in exchange for exclusivity. It has also been revamping functionalities for users, such as its new "Shows" feature (released this summer) that mimics Netflix-style episodic series.

"These steps further blur the lines between video-sharing and traditional scripted streamers, and likely raise the costs associated with NFLX's plans to build a rival creator-content library," Khallouf said. "We see headwinds to NFLX's industry-leading subscriber retention, driven by weakening original content draw and rising streaming fatigue (US households' monthly SVOD spend was +22% year over year to $70 in 2025). We expect upward pressure on NFLX content spend as it seeks to shore up engagement and as established creators leverage their rising IP values."

Second quarter earnings for Netflix did nothing to alleviate rising Wall Street concerns.

Sales missed estimates, third quarter guidance was cautious, and hours viewed on the platform only rose 2% in the first half of the year.

Somehow, we think Netflix adding more podcast shows on the platform won't fix its ills — at least this year.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the 'Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.

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