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Netflix's quarterly results report has triggered "several alarm signals" that will likely keep the range of values in the coming quarters, a technical badyst told CNBC on Thursday.
Victor Anthony, general manager and internet badyst at Aegis Capital, said the loss of paid domestic subscribers due in part to the "aggressive" regional price increases from the streaming giant was a cause for concern. The original content of Netflix and the imminent competition of new streaming platforms could cause a pause for investors, he said.
"What happens when competition becomes a factor?" Anthony said in an interview with "Closing Bell". "This could be a significant challenge for Netflix and their ability to grow [subscribers.]"
Anthony said that it might be time for investors to consider taking profits in Netflix.
Netflix shares closed down more than 10% on Thursday, one day after the publication of their second quarter results, which showed a loss of US subscribers and a large loss of international investment. The company blamed price increases, weak original content and a "driving effect" of a particularly strong first quarter.
He expects the third quarter to be strong as consumers hurry to watch the third season of the hit series "Stranger Things".
The report comes at an uncertain time for Netflix. He will lose two of his most watched shows, "The Office" and "Friends". It also faces the threat of new streaming content from competitors such as Disney.
Anthont said it was possible that these new platforms are "complementary" to Netflix, but this remains unknown.
"Can consumers pay for different streaming options? … we have not really tested this on the market yet," he said.
Michael Graham, Senior Internet Analyst at Canaccord Genuity, said he was not as concerned about the new competition, telling CNBC that Netflix could very well succeed "in this content battle".
"There's not a single show on Netflix that counts for 2 or 3% of its airtime, so it's hard to see a scenario in which consumers anticipate somehow the loss of "Friends," he said in the same newspaper. "Closing Closing" "segment.
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