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.
"Netflix faces a wide range of competition, including direct competitors like Amazon and Hulu, traditional cable and satellite video providers," Power wrote in a Jan. 4 research note. "Additionally, in the original premium content space, Netflix also effectively competes with HBO, Showtime, and Cinemax."
Still, Netflix is teaching consumers there is a much better relationship to television than what they get through the cable company, according to BTIG media and tech analyst Rich Greenfield. He told CNBC's "Fast Money: Halftime Report" on Tuesday that this concept is a "much bigger idea than Netflix's current $50 billion market cap" which is why he does not recommend selling the stock today.
Once a consumer learns to binge, they want to binge more and more content — there is simply no going back to linear TV with commercials and a week or more between episodes, Greenfield said.
"We just think that there's a value transfer from traditional companies to Netflix, Amazon, and Hulu," said Greenfield.
Disclosure: Robert W. Baird & Co. acts as a market maker in the securities of Netflix. Hulu is a joint venture owned by 21st Century Fox's Fox Broadcasting, Walt Disney's ABC, and Comcast's NBC Universal, the parent-company of CNBC.