It's been seemingly nothing but good news for Netflix Inc. (NFLX - Get Report)  of late, punctuated by its blowout second quarter announced on Monday, but not everyone is so optimistic. 

Wedbush analyst Michael Pachter, a notorious bear on Netflix, reiterated his concern on Tuesday that Netflix is "hemorrhaging cash" in pursuit of beefing up its original content library. Pachter's been known to lay into Netflix, at one point referring to the company as "a worthless piece of crap" back in 2005. He has the equivalent of a Sell rating on Netflix shares, as well as an $82 price target, which is more than half of the stock's price.

Shares of Netflix were surging 14% to an all-time high of $183.79 by Tuesday's close. 

Most of Wall Street lauded Netflix after it crushed expectations for new subscriber growth. The company posted 4.14 million new international subscribers and 1.1 million new U.S. members, which topped consensus estimates of 2.6 million and 631,000, respectively. Netflix shifted the bulk of its original content releases to the second quarter, which helped prop up the results. 

Quiz: Where Were Your Favorite Netflix Series Filmed?

But Pachter has consistently pointed out that Netflix is burning tons of cash in order to fund the creation of its original shows. On Monday, Netflix  guided for negative free cash flow between $2 billion and $2.5 billion in 2017, which Pachter views as "problematic" given that its free cash flow burn has grown from $1.7 billion in 2016 and just $920 million in 2015.  

Netflix's free cash flow losses can be compared to that of Tesla (TSLA - Get Report) , a stock that has also attracted a lofty valuation despite its consistent cash burn. The electric car maker had negative free cash flow of $1.4 billion in 2016. Tesla has continued to burn cash as a means of meeting its ambitious production targets, which has involved a lot of expenses, such as building its battery-making Gigafactory near Reno. Unlike Netflix, the cash burn has paid off, Pachter argued. 

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"If Tesla says 'We'll make 100,000 cars a year, but if we build this facility that could go up to 500,000 a year,' the idea is that there will be demand for all those cars," Pachter explained. "So at least you recognize that the higher manufacturing capability leads to selling more cars." 

Pachter said the same is true with Amazon (AMZN - Get Report) , which has spent a great deal of money on building 50 new fulfillment centers, but the investments lead to faster shipping and retail growth. 

"Not true with Netflix," Pachter said. "You have to ask yourself -- what are they building?" 

"The answer is not a Tesla factory and not an Amazon fulfillment center," he added. 

With limited visibility about where Netflix is headed next, Pachter said investors continue to buy into CEO Reed Hastings' vision, similar to the cult of Tesla CEO Elon Musk. But Pachter said he remains wary about how long Wall Street should buy into that idea. Sure, Netflix has had original content hits like House of Cards and  Orange Is the New Black, Pachter said, but it's also had its share of failures, such as The Get Down and Sense8, which were recently cancelled. Other original shows, like The Ranch, have simply become forgotten, he added. 

Competition is also greater than ever in the original content market. Pachter pointed to Time Warner's (TWC) HBO, which has had a consistent string of successful originals, but it also took the company 20 to 30 years to have such a solid record. Meanwhile, Amazon has ratcheted up its original content budget, alongside others such as Hulu. 

Pachter believes that Netflix is "destined" to be a cash-burning, high growth company until it changes its strategy and "accepts its fate" as a highly profitable slow growth company. The only way that it can keep seeing monster growth is if makes changes to its business model, such as higher subscription rates, Pachter said. The company also needs to consider bringing some folks from Hollywood on board, he added.

"In order for Reed to achieve his vision, Netflix is going to have to start hiring the best people in Hollywood who have the best eye for content," Pachter explained. "Amazon Studios, Hulu, HBO, they've all hired these guys. Everyone is gunning for Netflix."

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