Jul. 21 at 12:28 AM
Jim Cramer said Netflix's nearly 44% decline over the past year has made the stock increasingly attractive for long-term investors, but recommended building positions gradually rather than buying aggressively. Following a 10% post-earnings selloff, he acknowledged the company's disappointing quarter, citing weaker-than-expected revenue growth guidance and a softer content slate. Netflix now expects 2026 revenue growth of 13%-14%, down from 16.5% in 2025, while increasing competition continues to pressure its ability to accelerate subscriber and revenue growth.
Despite these concerns, Cramer highlighted Netflix's compelling valuation at roughly 19 times forward earnings—its lowest since 2022—and pointed to the company's record
$4.7 billion share repurchase program during the second quarter, with approximately
$27 billion still authorized for buybacks.
$NFLX