"What they're doing is getting more and more people to move to streaming," he said. "They were already moving there anyway, but you move to streaming and it's a higher-margin business for Netflix. My guess is that it will lead earnings estimates to go up."
Netflix's expansion to Latin America could also affect the company's earnings outlook. The continent currently has about 35 million to 45 million broadband subscribers, Mahaney said.
He expects the company to have 50 percent year-over-year revenue growth this quarter, with streaming acounting for much of this growth.
"This is the fastest growth rate they've seen in five years," Mahaney said. "No particular reason why video streaming wouldn't be just as interesting a market, just as large, just as fast-paced in Latin America or in Europe as it is here."
He added that he views Apple and Amazon as Netflix's two biggest long-term competitors.
Not all analysts have been as optimistic as Mahaney regarding the future growth of Netflix's stock. Tony Wilbe, an analyst at Janney Montgomery Scott, recently said he has a "sell" rating and a $170 price target on the company.Wilbe told CNBC he was concerned that the company might not be able to attract enough new customers to cover its off-balance-sheet obligations.
WATCH:Mahaney discusses Netflix jacking up subscriber prices.
CNBC Data Pages:
Mahaney's firm has a stock ownership in Netflix of more than 1 percent.