Netflix (NFLX) last night reported Q2 domestic and international subscribers below consensus while domestic and international contribution profit were essentially in-line, Piper Jaffray analyst Michael Olson tells investors in a research note.

The analyst believes new subscriber additions were impacted by fewer content releases and distraction from the World Cup. It's worth noting that Netflix posted a "similarly surprising" Q2 miss and Q3 guide-down in Q2 of 2016, which was followed by "solid upside" in Q3 of that year, Olson writes. The analyst thinks Netflix maintains a leadership position in a market that will "support several players."

He remains optimistic in the company's longer-term subscriber and average selling price growth and keeps an Overweight rating on Netflix with an unchanged price target of $420. The streaming service is trading down 12%, or $47.32, to $353.16 in premarket trading.