Bearish rumors swirling ahead of Netflix's earnings report miss the long-term bullish prospects for the media giant, internet analyst Anthony DiClemente said Monday.
The streaming video company is set to report its third-quarter earnings after Monday's closing bell. It faces concerns from investors about slowing subscriber growth, rising costs and increased spending stemming from content development and increased competition.
In premarket trading Monday, the stock was down about 1 percent.
DiClemente told CNBC's "Squawk Box" that Netflix is worth looking at as a long-term investment for a number of reasons.
The Nomura analyst gives three things to consider.
"They don't have a legacy business to protect the way traditional media companies do," he said. That gives Netflix a "singular focus," setting it apart from its competitors, he added.
Next, with millions of subscribers worldwide, Netflix has the ability to spread its content costs across its scaled subscriber base, DiClemente said.
Finally, the analyst lauded the company's secular growth. "The world is shifting to internet video; this is the market leader," he said.
DiClemente attributed short-term headwinds mainly to several major moves the company made last year such as expanding its international business.
"You're factoring in the new investments that have yet to yield a return," he said.
He said other minor headwinds include raising prices on its service in the U.S. and slightly slowed subscriber growth.
Thomson Reuters' consensus estimate for the company's third-quarter revenue is $2.28 billion, with the company expected to post earnings of 6 cents per share. That's compared with 7 cents per share on $1.74 billion in revenue in the third quarter last year.