Netflix reported strong numbers for its first quarter, but a couple of Wall Street analysts see risks for the company moving forward.
On Monday, the streaming giant reported earnings per share and revenue that met analyst expectations. Netflix shares rose 9.2 percent to a record high as investors cheered the company's strong subscriber growth.
However, Jefferies equity analyst John Janedis said in a note Tuesday the company's margins will be pressured by further content spending moving forward.
The company's forecast for a 12 percent operating margin in the first half of this year compares with its full-year forecast of 10 to 11 percent, given increased spending on content and marketing, Janedis said in the note.