Jim Cramer Says Netflix Sell-Off Makes Stock Worth Another Look

According to CNBC, Jim Cramer said Monday that Netflix's steep decline has made the streaming company worth another look, but he urged investors to buy only a small position and add gradually on weakness. He said Netflix shares have fallen about 44% over the past year, including another 10% drop after last week's earnings report, as the company missed second-quarter revenue expectations and cut its outlook for full-year revenue growth to 13% to 14% from 16.5% in 2025. Cramer said the quarter was disappointing, the content slate was weaker than usual, and Netflix no longer has the same competitive advantages it once had in streaming. He also said the company's plan to reduce disclosures and move its What We Watched engagement report to an annual release unsettled Wall Street, after it already stopped reporting quarterly membership numbers last year. Despite those concerns, Cramer said Netflix now trades at about 19 times this year's earnings estimates, its cheapest valuation since 2022, and noted that the company bought back $4.7 billion of stock in the second quarter and still has roughly $27 billion remaining under its authorization.