We recently published a list of Jim Cramer’s Latest Calls Before 2025 Begins: Top 10 Stocks. In this article, we are going to take a look at where Netflix Inc (NASDAQ:NFLX) stands against other stocks in Jim Cramer’s latest calls before 2025 begins.
Jim Cramer in a latest program talked about the market reaction to the Federal Reserve’s latest rate cut and its guidance that suggested fewer rate cuts moving ahead.
“I guess you could say the baby got thrown out with the bathwater. It was truly hideous, a little unexpected, and yes, wicked. Even though the market’s barely oversold, we may not get that quick snapback we normally expect in a deeply oversold market,” Cramer said.
Jim Cramer said Jerome Powell’s comments and tone were “stern” and his conference call “confounded” investors. Cramer said inflation has not come down enough and that has made the Fed’s job difficult.
Cramer then talked about different sectors and companies that need rate cuts amid a slowdown.
“I really wish the Fed hadn’t been so defensive about the need to cut rates going forward. A slower approach would have been much better. If they had explicitly taken a wait-and-see approach before this meeting, we’d be in a better position. This time, they telegraphed the wrong thing, hence today’s meltdown. However, if the weaker part of the economy deteriorates further or inflation comes down, the Fed still has room to cut. Here’s the bottom line: a previously data-dependent Fed chose not to be data-dependent today with its pronouncements, and that’s what drove the market down. This happened despite the quarter-point rate cut—something that’s typically good news for stocks—but it turned out to be the very opposite.”
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In
For this article, we watched some latest programs of Jim Cramer and picked 11 stocks he is talking about. With each company, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
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Netflix Inc (NASDAQ:NFLX)
Number of Hedge Fund Investors: 121
Jim Cramer in a latest program discussed how Netflix Inc (NASDAQ:NFLX) stock defied its doubters and kept rising despite concerns around its business model.
“We watch all sorts of programming from other countries because Netflix Inc (NASDAQ:NFLX) has taught us to like subtitles. It’s insane how good this company is—honestly, convincing Americans to read subtitles might be the most important cultural event of the 21st century.
And yet, Wall Street doubted Netflix the whole way, especially with their new ad-supported subscription tier. They didn’t get it perfect right out of the box, so many following the company presumed it was a bust. Oh, it was hardly a bust, and it’s just going to get bigger. Of course, it’s easy to say now that it wasn’t—you could’ve seen it—but those who spend their lives analyzing the company thought otherwise. They said, ‘Stay away,’ and these are the professionals. Who are we to doubt the professionals?
And then there’s the multiple—the darn price-to-earnings multiple. Netflix Inc (NASDAQ:NFLX) was always selling at 50 times earnings, which is just too high for people who care about valuation. But those people aren’t the general public. They aren’t the home gamers. The home gamers who love Netflix—they won. A cold stock? A cold stock that’s up 89% for the year.”
Overall, NFLX ranks 1st on our list of Jim Cramer’s latest calls before 2025 begins. While we acknowledge the potential of NFLX, our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.