Despite a recent sell-off, Netflix stock has higher to climb because of its strong subscriptions and a growing international business, RBC Capital Markets Managing Director Mark Mahaney said Tuesday.
The online-streaming media company reported better-than-expected quarterly earnings this week, and it also announced an increase in its subscription cost of $1 to $2 per month for new subscribers—a price hike that won't likely drive away customers, Mahaney said.
"You look at Amazon, Netflix and Pandora, I think all of them have proven value propositions, and they're able to raise pricing. They've got pricing power because of those value propositions," he said on CNBC's "Halftime Report."
"We think it can go higher," he added.