Pro: Netflix Could Be 5 To 10 Times Bigger In The Long Term

Netflix, Inc. (NASDAQ: NFLX)'s stock is suffering its single worst trading day since 2014 following its alarming second-quarter results, which resulted in many Wall Street banks lowering their outlook for the company.

Related Link: Big Banks Cut Price Targets Following Netflix's Q2 Results

However, it may be premature and erroneous to count Netflix out, and the company certainly has its share of bullish analysts and investors, including angel investor Jason Calacanis.

Related Link: Could Netflix Be An Acquisition Target?

Speaking as a guest on CNBC's "Squawk Alley" show on Tuesday, Calacanis pointed out that Netflix's original show "Stranger Things" is a hit show based on its ratings on Metacritic.

He continued that if Netflix continues to put up "amazing content" over the long term then the company could be "5 to 10 times bigger in the coming years."

Competitive Threats

A major case against owning Netflix's stock is the growing competitive landscape in the online streaming video segment. According to Calacanis, Netflix's biggest competitor, Amazon.com, Inc. (NASDAQ: AMZN) is only making "some inroad" with its Prime Video.

"The video portion of Amazon's business seems like a front to get more people to become addicted to ordering products on Amazon," he said.

However, Calacanis expects to see Apple Inc. (NASDAQ: AAPL) becoming more involved in the space and is already "dipping their toes" with an unscripted TV show about building apps.

Finally, Calacanis likes Netflix's move to raise prices on its user base and expects the company to use the money to further build out its content.

Bottom line, Calacanis has "huge faith" in Netflix's ability to overcome any short-term pain and continue growing its business.

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