Jim Cramer Says Netflix "Deserves the Benefit of the Doubt"

Netflix, Inc. (NASDAQ:NFLX) is one of the 13 stocks recently discussed by Jim Cramer. Cramer mentioned that the “company deserves the benefit of the doubt,” as he said:

“This morning, we saw a host of valuation downgrades in part because this market's been so fantastic, at least until today. The most glaring, a firm called Seaport Research Partners downgraded Netflix to Neutral after a fantastic run. Listen to this, ‘We believe that plenty of the long-term opportunity set is factored into the shares at this price, and the company needs time to execute against the expectations in advertising, aggregating, launching experiences, and expanding share again.’

Now, the risks mentioned, they're substantial, but Netflix has shown time and again that it can pull these things off. I think the company deserves the benefit of the doubt. If Netflix succeeds, and I bet they will, anyone who listens to this downgrade will miss another big move…

Some stocks deserve the benefit of the doubt. With Netflix, CrowdStrike, and Wells Fargo, you're buying into franchises with excellent bona fides and very smart CEOs. I'd much rather stick with these winners than sell them on valuation worries. I just don't think you'll be able to get back into such high-quality stocks at an easy-to-find lower level.”

Netflix (NASDAQ:NFLX) delivers entertainment content, including series, films, documentaries, and games in multiple genres and languages, accessible through internet-connected devices for streaming.

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Disclosure: None. This article is originally published at Insider Monkey.