RBC's Mark Mahaney: Netflix Now A 'Small Buy For Us,' Stock Split 'Irrelevant'

Netflix, Inc. (NASDAQ: NFLX) shares spiked up at the open on back of the company's announcement that it has approved a 7-for-1 stock split.

RBC Capital Markets' Mark Mahaney was on CNBC Wednesday to discuss how shares have almost doubled year-to-date and whether it is still a top Buy.

See Also: Lucky Number 7? Netflix Splits Stock, Shares Rise

Reasons Behind The Move

"Why is the stock moving as well as it has?," Mahaney began. "One the stock got oversold last year, at the end of the last year they had a miss on the quarter. You beat quarters, stocks go up. You have got new international launches planned for the back-half of the year, U.S. profitability levels continue to rise."

He continued, "Now it looks like they are on path to add more subscribers in the U.S. this year than last year despite a price increase. That is the evidence of pricing power, so, the fundamentals look extremely strong."

Took It Off Our Top Buys List

On whether RBC still has a Netflix as one of the top Buy picks, Mahaney said, "Yes, it's now a small Buy for us. We began the year with it as our No. 2 pick in the space. It appreciated 80 percent, we took it off our top Buy list. But we will stick with it, we have done a lot of survey work. Customer satisfaction levels continue to rise."

Split Won't Affect The Stock Price

According to Mahaney the stock split won't have a significant impact on the valuation of Netflix and it is ""irrelevant" for the fundamentals of the company.

Shares of Netflix traded recently at $693.74, up more than $13 (2 percent).