Netflix just delivered a softer 2Q with a subscriber miss across the board vs. Street expectations in what we would characterize as “near term gut punch” to the Netflix bull thesis. Total net sub adds of 5.2 million came in below the Street’s 6.2 million sub number as both domestic and international subs came in below expectations. After handily blowing away Street expectations on subs the last few years this is a clear speed bump for Netflix as the international miss was most concerning given this is the linchpin to the core growth thesis for the coming years. Domestic streaming net adds of 0.67 million vs. the Street at 1.23 million with international net sub adds of 4.47 million also coming in below the Street’s 5.11 million was a disappointment but does not move the needle on our bull core thesis that international subs will march down the path to hitting between 90 million and 100 million subs by 2020. As we head into the rest of 2018 we believe Netflix has a number of growth levers which should fuel the company’s next phase of strategic penetration among both US and especially international consumers despite some softness seen in 2Q. Overall headline revenue of $3.91 billion came in a hair below the Street’s $3.94 billion, while EPS of $0.85 came in above the Street’s $0.79 estimate. In terms of guidance, Netflix is guiding for September total revenue of $3.98 billion (Street is at $4.13 billion) and EPS of $0.68 (vs. Street at $0.72). The company importantly is guiding to net sub adds for September of 5.0 million vs. the Street at 6.0 million, prudence guidance in light of the shortfall seen in 2Q. While we look forward to more details on the conference call, we believe this is a speed bump rather than the start of a negative sub trend for Netflix as the streaming market and content arms race continues to be a major tailwind for the company over the next 12 to 18 months. While the knee jerk reaction will clearly be negative from the Street’s perspective, we would be buyers of Netflix on this weakness. We maintain our Highly Attractive rating and $500 price target on Netflix.