Jim Cramer - Mad Money Netflix Inc. NFLX-Q BUY Mar 24, 2025

Clearly winning the streaming wars, being pulled upward by increasing number of global subscribers. That's driving pricing power. New ad-supported tier, password-sharing crackdown. Investing in original content. Live sports are generating revenue. No dividend.

Increasing cashflow. Sees 23% earnings growth. Shares are down ~15%.

(Note the short timeframe.)  Until the last couple of weeks, the media sector has held up extremely well. Perhaps investors are thinking this area is not as impacted by tariffs. Correction Feb/March, but already bouncing back.

Their edge is their content library. Doesn't pay a dividend, so be disciplined: if you double your money, sell half. Any business news will punish shares. 

The chart shows a head and shoulders formation. It's a great, worldwide company that's done many things right. Is up only 5% this year. He likes subscription models.

It recorded a great quarter last week and last January, but hasn't been immune from this ugly market. But it has made up its recent losses and it up 10.84% this year. They reported a solid revenue beat and monster earnings beat. Also, they didn't sound nervous about the future or the economy. but gave strong guidance for this quarter and reiterated their full-year.

Impressed by last week's quarterly results. Cracking down on password sharing is generating more revenue. Innovating by launching ad-supported versions. Geographic expansion. Aggressive investment in content. Has become a big free cashflow story.

Officially classified as a consumer discretionary stock, but he considers it more akin to a utility. A relatively inexpensive indulgence for the value it offers. Difficult macro headwinds would have minimal impact.

Take out your cost basis (take some profits) and let it run.

Then buy a piece of it, a little, then buy more if it goes down. NFLX may be the best-growing stock in the market.

Meets a lot of his criteria but one -- it's not actually a capital-light business. Spends a lot on developing new content. A compounder. Well run and frugally run. Investors would do well to read about the culture and the CEO. Dominates the space, market leader. Quite a bit of direct competition.

If you got in at favourable prices, stick with it. Strong company. One of the biggest mistakes investors make is that they "interrupt compounding unnecessarily" (paraphrased from Charlie Munger).