With streaming giant, Netflix, performing beyond incredibly with earning reports, Jim Cramer of Mad Money speaks up against opposing FANG supporters and investors.
Jim Cramer spoke and explained how Netflix’s skyrocketing surge has given a huge boost to FANG which stands for the four major cloud companies, Facebook, Amazing, Netflix and Google and how they were near death in stock terms.
“These companies embody major long-term changes in the way we think, the way we do things, the way the global economy operates,” said Jim Cramer. He also spoke about how trying to analyze the stocks could drive anyone crazy.
Cramer went on to say: “Today’s epic 9 percent run in Netflix, after the company reported some preposterously fantastic sign-ups, is the kind of thing that makes you want to tear your hair out, if you have any, if you’re trying to value the stock on traditional metrics,” he said.
Netflix continues to climb to the top in stocks despite its massive spending and poor cash flow which has analysts somewhat unsettled and uneasy.
Jim Cramer argued that “the world loves Netflix” and why it’s the best performing stock of 2018 due to its consistently soaring popularity. He said: “the simple fact is that the world loves Netflix. We’re beginning to believe that it could easily reach 300 million subscribers someday and they’ll be willing to pay a heck of a lot more for the service. Why? Because it is such a bargain.”
Netflix uses Amazon to prepare streaming content as well as other services which only acts to boost Amazon as well as the other members of FANG. While not directly connected to Facebook on a business scale, the social media mega-giant has seen its own rise in stocks due to Netflix.