Investors should avoid Netflix shares, according to Jim Cramer.
“Netflix seems lost at sea, and I think its pullback was well-deserved. “You can buy the ones with inexpensive stocks and good fundamentals,” the “Mad Money” host remarked.
Cramer said he is particularly impressed by two streaming services.
“We got Disney for the Charitable Trust today. I like the streaming service and the rest of the market. “Paramount Global fascinates me,” he added.
Cramer also mentioned Disney as a stock that can withstand Fed tightening.
Netflix lost 200,000 customers in the first quarter, the first time since 2011, and expects a 2 million global paying subscriber drop in the second quarter.
Netflix’s stock fell 35% on Wednesday, hitting a new 52-week low earlier in the day.
As well as a suspension of service in Russia and user password sharing, Netflix warned that non-paying users could be targeted. The company may also offer lower-cost membership packages with adverts.
“I don’t think Netflix has much visibility into the future of the business, and they don’t seem to have a plan to right the ship soon. “No thanks,” Cramer responded.
