Netflix Eyeing Short-Form Content? Wells Fargo Predicts It’s Next Big Move

Streaming giant Netflix might be gearing up to disrupt the short-form content game—and Wall Street is already placing bets.

Wells Fargo analysts suggest the platform could soon pivot to TikTok-style vertical videos, capitalizing on dwindling attention spans and ad revenue opportunities.

The move would mark Netflix's latest play to dominate every corner of digital entertainment—from binge-worthy series to snackable clips.

Because when you're a $200B content behemoth, why settle for just revolutionizing long-form storytelling? (Though let's be honest—their CFO probably just crunched the numbers on cheaper production costs.)

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So, where could these come from? Wells Fargo’s Steven Cahall has an idea. “High-value short-form content could be NFLX’s next big MOVE w/ exclusive creator deals,” the analyst said. “We est. incremental engagement at an attractive ROI. It’s a 3rd pillar of growth after sports & ads.”

Streaming platforms have already begun acquiring shows from popular YouTube creators like MrBeast and Ms. Rachel, who bring with them large, primarily ad-friendly audiences. Cahall believes that securing exclusive, long-term deals with such creators could be a “source of positive NFLX newsflow,” potentially leading to upward estimate revisions. Combined with its push into sports, this could offer Netflix a path to expand user engagement while also “deepening its content.”

Nielsen data shows YouTube’s share of US TV time on a trailing six-month average has climbed from around 9% in 2024 to roughly 12% in 2025. Netflix, by comparison, has maintained a steady and slightly upward trajectory, currently holding about 8% of US TV time. When comparing estimated daily viewership per monthly active user, Netflix is at approximately 0.6 hours for 2024–2025, while YouTube comes in slightly higher at about 0.7 hours. Of course, Cahall points out that “not all engagement is equal,” and much of YouTube’s content might not translate directly to Netflix’s platform. Still, he believes there’s an opportunity for Netflix to add “complimentary programming” to its catalog.

Looking at broader trends in how Americans spend their time, Netflix, while considered “nouveau media,” largely operates as a “large screen/professional content service.” This stands in contrast to where much of the recent engagement growth is happening – on platforms like TikTok, social media, and user-generated YouTube channels. Traditional TV time has declined sharply among younger audiences over the past two decades, with even adults aged 25-44 now watching significantly less – down from roughly two and a half hours per day in 2009–2010 to under two hours today.

Given its current standing, Cahall believes Netflix can “increasingly drive higher content ROIs.” It’s no longer overpaying for originals or library titles, its push into live and sports content seems disciplined, and it now has the potential to serve as a platform for short-form creators. “All of this likely drives cont’d growth + OP leverage,” Cahall summed up. “These drivers make a $1tr market cap aspiration feel possible. NFLX deserves a high multiple given the opportunity.”

And with that in mind, Cahall has now raised his price target from $1,222 to $1,500, implying the stock will gain 22.5% over the one-year timeframe. (To watch Cahall’s track record, click here)

Most other analysts agree with that stance; based on a mix of 29 Buys vs. 9 Holds, the stock claims a Strong Buy consensus rating. That said, the $1,239.76 average target suggests the shares are fully valued. It will be interesting to see whether other analysts join Cahall in updating their targets or whether they will downgrade their ratings shortly. (See Netflix stock forecast)

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