It has been quite the year for Netflix, which is set to release its latest quarterly results after the closing bell on Tuesday.
Though the streaming giant announced that it will expand to new cities in recent months, investors are concerned over the company's ability to attract new subscribers in the U.S., said Will Power, senior research analyst at Robert W. Baird.
"I think international growth will look strong. We think a lot of that is already expected," Power told CNBC. "We do have some concerns on the U.S. domestic growth. We think that could be slightly light. That does make us a bit more cautious."
Power told CNBC's "Squawk Alley" on Tuesday that he is lowering his rating on Netflix to "neutral" with a revised $115 target price. He remains positive on the company's positioning and long-term growth, but factors such as international execution, content costs and rising competition are risks that could potentially grow.