Loup Ventures founding partner Gene Munster said CNBC's "Fast Money" on Wednesday that Netflix's disappointing second quarter results are a turning point for the company, saying the best days for the streaming giant "are in fact behind it."
The company reported growth of just 2.7 million global subscribers for the quarter, well below analyst estimates of more than 5 million, according to FactSet. The miss came both internationally and domestically, with the company losing more than 100,000 subscribers in the United States.
"This is negative, and I think we're going to look back at this quarter as one of the pivotal moments in the Netflix story," Munster said.
Netflix plunged more than 10% in after-hours trading followings its second quarter earnings report. The streaming video company reported 60 cents of earnings per share on $4.92 billion in revenue. Wall Street expected earnings of 56 cents per share on $4.93 billion in revenue, according to Refinitiv.
"The key insight here is that the content lineup that they had in the June quarter just simply didn't get the job done. We can talk about what's coming in terms of competition, but ultimately that is the tip of the spear of this story," Munster said.
Netflix raised its subscription prices in several markets this year and is facing increased competition in the United States. Disney, NBCUniversal, Apple and Warner Media all have plans to launch their own streaming services.
The increased competition means that some of Netflix's most popular shows, such as "Friends" and "The Office," will soon no longer be available on the service.
"As much as I love the company, I just think its best days, unfortunately, are in fact behind it," Munster said.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.