Jim Cramer, host of CNBC’s Mad Money, pushed back against bearish sentiment surrounding Netflix, Inc. (NASDAQ: NFLX), telling investors the market has it wrong on the streaming giant.
A caller on the show asked Cramer directly whether there was “something fundamentally wrong” with the company, prompting a blunt defense from the veteran market commentator.
Cramer responded: “People think the business has slowed. I disagree with that analysis, but you know what? The market has turned against the FAANGs.”
He continued: “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.”
Cramer added: “They can’t seem to shake it, and that’s all she wrote,” suggesting the market’s negativity is rooted in perception rather than underlying business performance.
Much of the investor skepticism around Netflix appears tied to the company’s reported pursuit of a Warner Brothers Studio acquisition, a deal that ultimately did not move forward.
During a separate June 9 episode, another caller asked Cramer to identify Netflix’s biggest headwinds and whether the stock represented a buy, sell, or hold opportunity.
Cramer replied: “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.”
He offered a more charitable interpretation of the aborted deal, saying: “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.”
Cramer closed his remarks with an optimistic outlook on the stock’s entry point, stating: “I think we’re going to look back and think, wow, I bought it down 13%, not bad.”
Netflix provides a broad range of streaming entertainment globally, including TV series, films, documentaries, and games, and remains one of the most closely watched names in the media sector.
The stock was up 4.66% at the time of reporting, suggesting some investors may already be coming around to Cramer’s more bullish view on the company’s prospects.
