Jim Cramer Says You Should Sell These 5 Stocks

4. Netflix, Inc. (NASDAQ:NFLX)

Number of Hedge Fund Holders: 113  

Netflix, Inc. (NASDAQ:NFLX) owns and runs a streaming platform. Cramer was generally bearish on the company during his show on April 14 and even the upcoming quarterly earnings report of the firm failed to excite him. He underlined streaming overload on the consumer as one of the key reasons behind his bearish outlook on the company. 

On April 14, Morgan Stanley analyst Benjamin Swinburne kept an Equal Weight rating on Netflix, Inc. (NASDAQ:NFLX) stock and lowered the price target to $425 from $450. Other advisors like BMO Capital and Barclays have also lowered their targets on the stock recently.

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Netflix, Inc. (NASDAQ:NFLX) with 4.1 million shares worth more than $2.4 billion. 

In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Netflix, Inc. (NASDAQ:NFLX) was one of them. Here is what the fund said:

“We were quite active during the quarter, leveraging volatility to add 10 new names to the portfolio while exiting seven others. Among our new purchases was Netflix in the communication services sector. Netflix, Inc. (NASDAQ:NFLX) is the global leader in the production and distribution of streaming entertainment, operating a high-quality subscription business with room for continued growth in a large addressable market. The stock has faced headwinds due to concerns around subscriber growth. We attribute this recent weakness to COVID-related production delays that have slowed the pace of new shows premiering on the platform and believe Netflix, Inc. (NASDAQ:NFLX) has a strategic advantage in scaling its business given its large content library and lead versus peers in establishing local content studios and partnerships.”