Too early to buy Netflix, says Needham

Needham analyst Laura Martin keeps her Hold rating on Netflix after the company’s Q4 results, saying it is too early to buy the stock despite its outperforming member adds. The analyst believes that the company will have elevated churn over the next two quarters because its price increase implemented was done "in the most disruptive way possible". By turning off password borrowers, every Netflix sub paying $20/month for maximum streams will be forced to decide whether to trade down to a lower tier, and this "forces paying subs OUT of inertia", Martin tells investors in a research note.