Zhongtong Finance APP noted that Netflix (NFLX.US) announced better-than-expected third-quarter performance, boosting the stock price of this streaming giant and boosting bullish confidence, but Citigroup maintains a neutral stance on Netflix stocks.

Director and CEO Jason Bazinet stated, "(Netflix) fundamentals are really good, so there's really nothing to pick on. I'm a little concerned about what I call the rotation out of some of these high-flying growth stocks."

Bazinet explained that with the acceleration of price multiple expansion, the threshold for a bull market is getting higher. "When I start hearing that kind of language, I get a little uncomfortable because when you go through this kind of multiple expansion many times, you typically need an accelerating revenue line. As we are evolving, Netflix's revenue is actually decelerating. Their growth this year is 15% and they forecast next year's growth to be between 11% and 12%."

The analyst pointed out another area of concern which is the growth in user engagement. "They say that their engagement is going up, but it's only up 1%, so the question is, they've spent a lot of money on content, but at a deeper engagement level, they're not getting the response."

He added, "It's really not about how much money they're spending. I believe it's more about a functionality, whether they are spending money on the right things to keep consumers engaged with Netflix, increase those engagement levels, and then allow Netflix to take pricing."