Netflix search trends, content slate indicate Q4 sub upside, says Piper Sandler
Piper Sandler analyst Michael Olson says the combination of his firm's "Netflix Navigator" search index and YouTube trailer analysis point to Q4 subscriber addition upside for both Netflix's domestic and international segments. The search index analysis now suggests Q4 domestic subscriber growth of 5.8% year-over-year, above the consensus estimate of 4.8%, and international growth of 31.3% year-over-year, above the consensus at 30%, Olson tells investors in a research note. Further, Through all three months of the quarter, the number of U.S. YouTube trailer views for "major" Netflix originals is up 18% year-over-year from Q4 of 2018, signaling a "more engaging content slate," adds the analyst. Olson continues to expect Netflix will continue to capture a significant portion of traditional content dollars as they migrate to streaming. He maintains an Overweight rating on the shares with a $400 price target. Netflix closed Friday down $6.61 to $329.05.