Jim Cramer Believes the Market Is Wrong About Netflix

Netflix, Inc. (NASDAQ:NFLX) was among the stocks on Jim Cramer’s Mad Money radar as he taught investors how to profit from the upcoming wave of takeovers. During the episode, a caller asked if there was “something fundamentally wrong” with the company. Cramer replied:

People think the business has slowed. I disagree with that analysis, but you know what? The market has turned against the FAANGs. It’s turned against the Mag Sevens. It’s caught up in that negativity, and it can’t seem to shake the fact that it was trying to buy Warner Brothers Discovery. They can’t seem to shake it, and that’s all she wrote.

Photo by Thibault Penin on Unsplash

Netflix, Inc. (NASDAQ:NFLX) provides streaming entertainment, including TV series, films, documentaries, and games. During the June 9 episode, a caller inquired about the company’s biggest headwinds and asked whether the stock was a buy, sell, or hold. Cramer responded:

Okay, I want to buy Netflix. The biggest headwind is that they went and got involved with trying to buy the Warner Brothers Studio, and everyone thinks, oh, they don’t know what they’re doing. I think they took the optionality that they had. They debated it. They made a decision, then they decided not to do it, because they’re going to do fine. I think we’re going to look back and think, wow, I bought it down 13%, not bad.

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