Opinions Jim Cramer - Mad Money
Netflix Inc.NFLXBUYMar 24, 2025
Jim Cramer - Mad MoneyStock price when the opinion was issued
As of Nov 11, 2026. Market Open.
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Streaming industry has become much more competitive. Difficulty maintaining a consistent, ongoing subscriber base (rather than intermittent), which also affects advertiser interest. Wait to see action on this issue before committing more $$.
Disclaimer: Not owned in segregated client accounts. However, her colleague John O'Connell owns it in the equity fund that he manages.
It's had a rough year, following the failed Warners bid. He still likes it, because the business is performing quite well. They have more subscribers and revenues outside the U.S. where they have little competition and are growing rapidly. Also, they replaced the head of content, and are looking to ad sports. Lots of ways to improve growth ahead.
(Analysts’ price target is $86.35)
The fundamentals are as good or better as people have hoped. But there are worries that people are watching YouTube and no longer Netflix, but this is not in the numbers. These things reverse very quickly. Look at Google's stock. He thinks Netflix will grow at double digits for many years.
Barry Schwartz
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Premium contentNetflix plans to accelerate growth in live entertainment. It currently spends 5% of its annual $20 billion content budget on it, though attracts 1% of viewership. Overall content spending is up from $24 billion in 2025 to $25.1 billion in the first half of this year alone. The spending will squeeze cash flow, but new content will attract viewers in an ever-competitive industry. As for the share price, it's been brutal, plunging from its spring highs around $108 to a current bottom of $67 to match level from late July. Yes, Netflix faces challenges, but it has too many good numbers to dismiss. Time to bottom-feed.
There are two big streaming companies, Netflix and YouTube. Netflix should be able to increase its subscriber growth by diversifying its business into sports, etc. There is an uptick on their paids. It does a lot of its own content and buys content very easily. You can buy at these levels.
He and Lang suggests consumer-oriented stocks with a subscription base that work even in a slowdown: Netflix, Roku and Spotify. Last January, NFLX reported a super quarter, then shares gapped up, but rolled over mid-February with the market. Lang says that was a reset. Shares have been rebounding ever since, now 9% this year. NFLX has resistance at $1,000, but if it breaks that, Lang thinks it can reach $1,250. A momentum indicator--MACD--recently made a bullish crossover. Meanwhile, the Chaikin Money Flow (CMF) is slightly bullish; big buyers are still buying. RSI is starting to bounce after hitting oversold earlier this month, now around 50, so there's a ways to go before being overbought.