Netflix is 15% below purchase price
Jim Cramer fielded a question from a caller about Netflix, which is trading 15% below their original purchase price.
Cramer suggested averaging down on the stock, citing that the price-to-earnings multiple is at 20 and earnings are okay.
He has consistently defended this thesis throughout summer market volatility, previously pointing to market anxiety over Netflix’s pursuit of Warner Bros. Discovery assets as a headwind rather than operational decay.
The recommendation shows Cramer’s willingness to buy into the stock despite recent pullbacks.