Jim Cramer Discusses Netflix (NFLX), JPMorgan & Risk-Reward

Ramish Cheema

Mon, May 18, 2026 at 10:45 AM EDT 2 min read

We recently published Jim Cramer Discussed A Mysterious Yellow Light & These 9 Stocks. Netflix, Inc. (NASDAQ:NFLX) is one the stocks discussed by Jim Cramer.

Media and streaming giant Netflix, Inc. (NASDAQ:NFLX)’s shares are down by 26% over the past year and by 4.4% year-to-date. Erste Group downgraded the stock to Hold from Buy on April 27th and discussed the firm’s growth rate. It outlined that Netflix, Inc. (NASDAQ:NFLX) could experience a slowdown in revenue growth in 2026, by growing its revenue between 12% to 15%. The financial firm added that the media firm’s valuation appeared to be high, which limited the potential for future growth. While Erste is cautious about revenue, Cramer believes Netflix, Inc. (NASDAQ:NFLX) has a great year ahead of it:

“I think the opportunity here that no one is really seemed to be focused on, which is Netflix. They got three NFL games, including one on Thanksgiving Eve, which seems to be incredibly high rated. And yet the stock’s not going up. JPMorgan says the advertising sales are very, very good. I think that the risk reward that I would call, with the stock down 5% for the year is very high.”

Photo by Souvik Banerjee on Unsplash

Oakmark Fund stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q1 2026 investor letter:

“Netflix, Inc. (NASDAQ:NFLX) is the leading streaming entertainment service with over 325 million subscribers and $45 billion of revenue. This scale creates a valuable moat, in our view. Netflix buys more content than its competitors in aggregate but pays less per subscriber, creating a valuable customer proposition as the business grows. Still, the stock declined significantly over the past several months as market participants focused on slowing engagement and the company’s approach to buy Warner Bros, creating an attractive buying opportunity in our view. We are confident that Netflix’s engagement remains strong and believed that the shares looked attractive with or without the acquisition. We find the business attractive as it is trading for its lowest relative valuation since 2022, a period that produced strong subsequent returns.”

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