Cramer was mesmerized when he heard the Netflix [stckqut]NFLX[/stckqut] conference call. The stock rallied 18% after the quarter and is up 137% for the year on the split adjusted basis. Cramer discussed what he learned from the conference call and where he thinks the company is headed.
Netflix is way too big for just a $43B market cap. The company has original content that is being built into almost all the TV streaming services in the world. The company has a solid grip on internet and technology. Secondly, the total addressable market for the company is more than 400M subscribers. Customers get unlimited movies and shows at a bargain price. Almost everyone can afford it. Thirdly, the original content is brilliant and is putting the customer first instead of being dictated by advertisers. Lastly, the management is not under promising and over delivering on purpose, they instead do not know how good they are. The company keeps giving what customers want and the subscribers are increasing as always.
"Stop saying 'Holy smokes, Netflix is now bigger than X or Y or Z television or entertainment company.' Get used to it. It should be," said Cramer. He thinks that it will take a big effort to screw up this wonderful company. He thinks that $150 is a realistic target for this stock.