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Jim Cramer says Netflix is a 'beginning position' after earnings hold up
Cramer pointed to a roughly 20 price-to-earnings multiple and said Netflix engagement has stayed solid despite mid-year volatility, while some Wall Street firms flagged weaker engagement growth earlier in 2026.
Yahoo Finance reports that on CNBC's Mad Money on August 11, Jim Cramer told a caller that Netflix, Inc. (NASDAQ: NFLX) could be treated as a starting position even after the stock fell about 15% from the caller's original purchase price.
Cramer said he focuses on where the stock is going rather than its past, and he argued that Netflix's earnings were still okay. He also cited that the stock's price-to-earnings multiple is about 20, suggesting the valuation had compressed enough to consider adding.
The segment also revisited Cramer's earlier view of the company's headwinds, including market anxiety around Netflix's earlier pursuit of Warner Bros. Discovery assets. Cramer said he thinks the decision not to proceed should be viewed more positively over time.
Yahoo Finance also notes that following Netflix's Q2 2026 earnings in July, Benchmark maintained a Hold rating and said engagement growth was 2% year-over-year in the first half of the year, as subscriber additions in core North American and European markets normalized. It adds that KGI Securities downgraded Netflix from Outperform to Neutral in July 2026.
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