The Netflix bulls are feeling vindicated after the online video company put up better-than-expected numbers on Monday. And some analysts see more gains to come its benefits from its growing original content offerings.
"What you will see here is the company growing its total addressable market and improving profitability at the same time," Tony Wible, an analyst at Janney Montgomery Scott, told CNBC. "So I think they have more capacity to buy more content which improves the competitive environment even more. I think you have a great, virtuous cycle that's kicking in."
Originally programming is transforming how consumers view Netflix and is likely to reduce long-term subscriber churn, said BTIG's Richard Greenfield in a separate "Squawk on the Street" interview.