Despite Netflix’s content being commendable, its stock hasn’t been doing too well over the past year. While it has performed considerably better since January 2026, it dropped further after the company reported the earnings of its first quarter. This understandably left a few investors feeling uneasy.
But while the market seemed to have lost hope about Netflix, Jim Cramer, one of the most well-known stock commentators and host of CNBC’s Mad Money, is not changing his stance. He still believes in Netflix, and his reasons are hard to ignore. If you have been waiting for the right moment to invest in Netflix Stocks, Cramer suggests that this is the best time to do so.
Why Jim Cramer still has faith in Netflix stocks
As Yahoo! Finance reported, Netflix actually beat analyst expectations in its first quarter of 2026, bringing in over $12 billion in revenue and delivering earnings per share higher than what was expected. While this seemed like good news for the streaming platform, Netflix’s stock still fell 10% in a single day. A big reason for this was the investors’ frustration over Netflix walking away from a potential deal to acquire Warner Bros., a move many felt could have changed the company’s future significantly.
Cramer was also frustrated due to the same reason. He felt Netflix made a mistake by not addressing the Warner Bros. decision openly during their earnings call. Instead of explaining why they passed on such a significant opportunity, they moved on as if nothing had happened. As Yahoo! Finance reported, Cramer said,
“I guess I think what a lot of people felt was, how can you just do a normal call? You had this incredible, incredible takeover that was, that really was, in the end, abandoned. They could have had it.”
Cramer felt that investors deserved a real conversation about that decision, not just an update. As he described it,
“it was like a plain old fashioned Netflix call”
and that left a lot of people unhappy.
Despite his frustration with how the company communicated about the abandoned acquisition, Cramer made it clear that he has not lost faith in Netflix itself. He pointed out that one awkward earnings call does not erase years of outstanding performance. His advice to investors was:
“I think that you have to give them the benefit of the doubt. If you take a look at where the stock was when Reed Hastings started. . . It’s been remarkable, and so, to not give them the benefit of the doubt, is just really being too skeptical.”
He also gave credit to Netflix’s founder, Reed Hastings, for building something truly ahead of its time. In Cramer’s opinion, Hastings had the ability to understand what people wanted before they even knew it themselves. As he credited Hastings, saying,
“He knew what you wanted, he predicted it correctly. He gave it to you. It’s almost as if… this was what we do when we go on ChatGPT. He knew us.”
That kind of visionary thinking, Cramer argued, is not something you walk away from just because of one bad week of Netflix stocks.
Netflix has no traditional TV system, a global subscriber base, and a content library that brings people back over and over again. He thinks that at a time when Netflix stocks are down and people are hesitant, it is exactly when long-term opportunities might appear. Cramer’s suggestion is simple: Netflix remains what it was; it has only faced one hurdle and did not address it properly. For investors who are patient and not running to make money overnight, the Netflix stock going down after performing pretty well in the past shouldn’t stop them from investing in the streaming platform.
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Edited by Sroban Ghosh