Wells Fargo downgrades Netflix: 'If content is king, then cash is queen'

Netflix CEO Reed Hastings speaks during an interview on day two of the Netflix See What's Next: Asia event at the Marina Bay Sands on November 9, 2018 in Singapore.
Ore Huiying | Getty Images

Wells Fargo downgraded Netflix on Monday and said the cost for the streaming service to acquire new subscribers will be "more expensive than investors realize."

The firm lowered its rating on the stock to underperform from market perform and moved its price target down to $265 from $308. Wells Fargo said it also expects spending levels to remain elevated due to increased streaming competition from other services such as