Jim Cramer reacts to Netflix earnings: Must-see content will bring new subscribers

1 Просмотры
"After the incredible performance this company's given us over the years, you've gotta remember that doubting Netflix has been a mistake every step of the way," the "Mad Money" host said. Subscribe to CNBC Pro to access the full episode of Mad Money:

CNBC’s Jim Cramer came to Netflix’s defense Wednesday after shares of the streaming giant sold off on its first-quarter report.

The stock plunged more than 7% since the report came out after Tuesday’s close, despite the company beating estimates on the top and bottom lines. Investors were disappointed by softer-than-expected subscriber growth and an uncertain future in the short term, Cramer noted.

“After the incredible performance this company’s given us over the years, you’ve gotta remember that doubting Netflix has been a mistake every step of the way,” Cramer said on “Mad Money.”

Netflix reported having 208 million paid subscribers at the end of March, a 14% increase from a year ago but short of the 210 million figure the company expected.

Despite the dip in subscriber growth, CFO Spencer Neumann said on the conference call that “business remains healthy,” engagement is increasing and customer turnover is declining.

“To me, that says ‘please, don’t panic’ ... I think they’ll find a way to jumpstart new sign-ups with must-see content, whether they create it themselves or have to license it from someone else,” Cramer said. “In other words, I am giving Netflix credit for something that doesn’t exist yet, something that will make us feel compelled to subscribe despite all the competition.”

Earlier Wednesday, Cramer said Netflix stock could potentially drop to $490 a share, though he remains bullish in the long run. Netflix shares finished at $ on Wednesday, down 14% from their peak trade in January.

» Subscribe to CNBC TV:
» Subscribe to CNBC:
» Subscribe to CNBC Classic:

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30:

Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Facebook:
Follow CNBC News on Twitter:
Follow CNBC News on Instagram:

Зарубежные фильмы
Комментариев нет.