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Calacanis says Netflix may be pricey, but it still has room to grow

One investor says there's still room for Netflix to grow, despite the stock's current price tag.

Angel investor Jason Calacanis told CNBC's "Squawk Alley" that the streaming service's deal with Comcast may have been a "white flag" for the cable giant. He said that this is a good sign for Netflix, in spite of concerns that "we've reached peak television with the number of shows growing beyond what the base can actually consume."

Calacanis explained that cable companies live in fear of customers cutting the cord and creating their own bundles out of video-on-demand services such as Apple TV, Hulu and Netflix.

"Comcast is just very scared, scared to death that people are going to those other options more often," he said.

The Comcast deal is a "very big development," according to Tuna Amobi, senior media and entertainment equity analyst at S&P Global Market Intelligence. He told "Squawk Alley" that the agreement will help Netflix "grab some of the low-hanging fruit and be able to mitigate the potential decline in a domestic subscriber base."

Jefferies cited the weakness in U.S. subscriber growth as a reason for downgrading the stock from "hold" to "underperform" in a Wednesday note to clients.

Calacanis said, however, that the secular trends make Netflix an attractive investment if investors can stomach the stock's near-term price-to-earnings ratio, about 326.29 on a trailing 12-month basis according to FactSet. He explained that it is a "juggernaut of a business" that isn't "going anywhere."

"So Netflix might be expensive right now and they may be faced with a lot of competition, but when we're here five years from now or 10 years from now, Netflix will have hundreds of millions, a quarter billion, 500 million subscribers in the United States and internationally combined," Calacanis said.

Andy Hargreaves, senior digital media analyst at Pacific Crest Securities, agreed and said that the winner in video is "going to be the biggest player. It's going to be the most scaled player, and right now that looks like Netflix to us."

Calacanis added that the real runway for Netflix will be its international subscriber base.

"The international story is in the very beginning of the first inning, so I see a lot of growth left for the company. It's exceptionally well run and, yeah, there's not many companies that can say we're going to go into all of these other countries at once and we're going to do it this aggressively," Calacanis said.

Disclosures: S&P Capital IQ and/or one of its affiliates has performed services for and received compensation from Netflix during the past 12 months.

Pacific Crest expects to receive or intends to receive compensation for investment banking services from Netflix within the next three months. The firm is also a market-maker in Netflix.

Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com. Comcast is also a co-owner of Hulu.