CNBC’s Jim Cramer Buries Netflix as Stock Plummets: ‘A Company That’s Lost Its Way’
CNBC’s Jim Cramer tore into Netflix on Wednesday following news that the streaming giant lost subscribers for the first time in over 10 years, leading to their shares tumbling 25 percent.
In an earnings call, Netflix CEO Reed Hastings floated the idea of introducing advertisements into content, something Netflix has avoided while other streamers like Hulu and Peacock have embraced. The company needs to “monetize sharing,” he said, referencing the password sharing among consumers.
“Technology is beyond their control,” Cramer said on Squawk on the Street summing up Hastings’ comments, which the financial pundit said amounted to a “disjointed conference call” from a “company that’s lost its way.”
“They have not monetized 500 million viewers. What are they thinking? We won’t watch an ad to see who wins in Squid Game?” Cramer said at one point, referencing the popular Netflix miniseries. The streamer has plenty of content, Cramer theorized, but they are mostly one-off releases that are quickly binged and then forgotten by consumers.
In a Wednesday tweet, Cramer admitted Netflix may need to be bought in the future to keep from going under should they not bounce back from their recent numbers.
the authorities will go nuts. Their doctrine may evolve to something like “will it go under if it doesn’t get a bid” https://t.co/BwC43g2ooz
— Jim Cramer (@jimcramer) April 20, 2022
Some critics on social media pointed to a tweet from Cramer in January encouraging people to buy Netflix stock. He said on Wednesday he has not been positive about the company recently and even personally consumes other streamers more, like Hulu.
Netflix! BUY !
— Jim Cramer (@jimcramer) January 3, 2022
Cramer was certainly not encouraging buying on Wednesday, calling the earnings call from Hastings “arrogant.”
“I didn’t feel like they gave me anything I could hang my hat on,” he said.
Watch above, via CNBC.
