Mijatovic analysed the match on Cadena SER this morning.
"You have to be realistic and say that Arsenal were the better team in both matches. When we all expected Real Madrid to pull off their usual performance, Arsenal didn't let that happen.
"Real Madrid came out very nervous, and Arsenal is a very awkward team: they have a good game and have nothing to lose. For me, they're emerging as one of the favourites to win this competition," the former Real striker said.
Joselu not replaced
On what Real is missing this season, Mijatovic was clear: "When you turn to the bench and want to do something , you realise that you're missing a veteran who can score a goal, a leap forward, something that makes a change.
"Last year we had that with Joselu. Now we have to look for positive things and, as (Carlo) Ancelotti says, there's the Copa del Rey final, I'm also in La Liga, the Club World Cup... These things happen, you can't win the Champions League every year."
Regarding the Italian coach's future, Mijatovic also said: "Real Madrid has this thing that practically no other team has. Defeats are very unpleasant and the coach is under a lot of pressure .
"The discussion immediately starts about whether you're worth it or not. It wouldn't be a bad idea to consider another coach, but that's something we'll think about later.
"Now, let's focus on the Cup, the League, the Club World Cup, etc."
Mbappe booed
Finally, he wanted to come to Kylian Mbappé's defense after some home fans booed him: "We'll evaluate Mbappé's season when it's completely over, and his numbers are good.
"We also have to point out the performances of the others. The Frenchman is a player who will bring us a lot of joy, I have no doubt about it."