The bullish call comes just a week before Netflix is set to report second-quarter financial results after the closing bell on July 16.
Terry said he said he expects the company’s subscriber additions to be “well above guidance.” He is forecasting an increase of at least 12.5 million net subscribers, compared to Wall Street’s consensus estimate of about 8.1 million.
Netflix shares have soared more than 65% this year and the company is worth over $240 billion. It had 182.9 million global subscribers at the end of the March quarter.
And he does not think that Netflix is at its peak just yet, despite some who claim that there are few people left who haven’t already signed up for an account.
“While the thesis ‘if you haven’t subscribed by now, you never will’ is an easy rhetorical, it fails to capture the reality of … a dramatically changing world that is pushing changes into every corner of consumer behavior,” Terry said in the report.
Although he did cite risks such as “competition from new entrants and established video streaming companies,” along with higher programming costs he also noted that “the sheer scale of Netflix’s ad free content library” should lead to even more growth.