Piper search index points to 'strong' Q4 for Netflix domestic subs
Piper Jaffray analyst Michael Olson says his analysis of Netflix search trends points to a "strong" Q4 with potential upside for domestic subscribers, and likely in-line international numbers. Consensus calls for 10.0% year-over-year domestic sub growth in Q4 and Piper's search index points to 11.0% growth. For international, Q4 consensus calls for 36.7% year-over-year sub growth and Piper's index points to 46.0%. Olson, who tells investors not to directly apply these implied growth rates due to errors in the model, views the search index as "directionally positive" form the company's domestic numbers. The analyst sees a "high likelihood of a strong Q4 for Netflix domestic sub adds" and keeps an Overweight rating on the shares with a $430 price target.