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Netflix sub miss driven by short-term headwinds, says Piper Jaffray
Piper Jaffray analyst Michael Olson attributes the weaker than expected U.S. and international subscribers reported last night by Netflix to higher churn from short-term headwinds. Netflix is facing a higher degree of churn from un-grandfathering related to the price increase, which will be largely complete by the end of Q3, Olson tells investors in a post-earnings research note. Further, the upcoming Summer Olympics could negatively impact net sub adds, the analyst contends. Olson thinks neither will impact the long-term penetration of the service, however. He keeps an Overweight rating on Netflix with a $122 price target