Netflix had a "good enough quarter," but the way it's running its business leaves something to be desired, widely followed tech investor Gene Munster told CNBC on Tuesday.

"It is not a good business model," he said on "Fast Money" shortly after the streaming giant reported first-quarter earnings.

He pointed to the fact that Netflix expects its 2019 free cash flow deficit to be negative $3.5 billion.

"At $10 a month they would have to add 30 million [subscribers]," said Munster, founder of the venture capital firm Loup Ventures.

"At the current run rate, that probably puts it toward the end of 2020 before they kind of alleviate that cash burn," he said. "Now they can do some things in terms of making some of the content costs a little bit more efficient. But I think that in general more competition is not good for that."