Robert Peck, an Internet equity analyst with SunTrust Robinson Humphrey, said on Wednesday that he is a big believer in the opportunity presented by Netflix's stock split.
"We think it's a good move; it provides more liquidity for them," he said in an interview with CNBC's "Squawk on the Street."
On Tuesday, Netflix shareholders approved a massive increase in the number of shares the company is authorized to issue, the first step toward a possible stock split. The video-streaming service won approval to raise its share authorization by nearly 30 times to 5 billion from 170 million.
CEO Reed Hastings said at the company's annual meeting that management will seek approval from the board of directors "in due course" to pursue a stock split, Netflix spokeswoman Anne Marie Squeo said.
On Wednesday, the company became the best S&P 500 performer, hitting an all-time high. Shares are up about 97 percent since the start of the year.
Peck said that the split could provide tremendous opportunities for a company that is "disrupting linear TV." However, the stock is a little expensive, he added.
He said a move like this could signal M&A activity in the future.
Disclosure: Neither Robert Peck nor SunTrust owns shares of Netflix. Netflix is not an investment banking client of SunTrust.
—Reuters contributed to this report.