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Cramer Worries You’re Getting Him Wrong on This Stock

Monday, 29 Apr 2013 | 6:53 PM ET
No Huddle Offense: Could Microsoft Purchase Netflix?
Monday, 29 Apr 2013 | 6:58 PM ET
Mad Money host Jim Cramer shares his final thoughts of the day.

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"People keep getting me wrong," said Jim Cramer. The Mad Money host worries some people are drawing conclusions that he never intended.

The issue at hand is Cramer's outlook on Netflix and his commentary that either Microsoft or Apple should buy Netflix.

Here's the confusion: Just because Cramer has said that he thinks either Apple or Microsoft should buy Netflix doesn't mean he thinks they're actually in talks.

Adam Jeffery | CNBC

But the Mad Money host insists the speculation is warranted because it's ideas such as these that are turned over on Wall Street all the time. "Just because I am a journalist and not an investment banker doesn't mean I shouldn't examine what could happen."

And Cramer sees a great deal of value in an acquisition by either company.

In the case of Apple, Cramer believes Netflix could quickly lead to a new Apple TV, one that would transform the living room, as Steve Jobs had talked about before losing his battle with cancer.

"I think what's holding up so-called iTV is that the cable companies won't play," Cramer speculated. "So why not bypass the cable companies by buying Netflix?"

As for Microsoft, the Mad Money host sees tremendous synergy between Netflix and the new Xbox. "What a combination to offer Netflix with an Xbox. It would be electric and it could propel the portion of Microsoft that people like so much, the entertainment device business, to be a much larger portion of the pie."

Again, these scenarios are strictly speculative. But there may be a very tangible takeaway – and that is, Netflix appears to be quickly becoming a media powerhouse.

"Reed Hastings is saying very specifically that Netflix currently has 30 million U.S. subscribers alone," Cramer explained. According to research from SNL Kagan, that's about the same as HBO.

Also, Netflix may have a business model that better navigates the future landscape of media.

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"According to Hastings, people will cut the cord to their cable company over time because most people don't want most of the programming that is offered," Cramer said. "They just want targeted programming. We all wade through hundreds of stations we don't want to get to what we do want. Hastings is saying that will go away."

If that's indeed the case, Netflix may be in the sweet spot. (Read More: Consumed with Disdain Street Missing Netflix Virtues?)

Now make no mistake, all of what you're read above is conjecture. However, Wall Street is awash with conjecture – it can lead to smart and strategic investment decisions. "Trust me," Cramer added, "this is an important part of investing and precisely what professional investment bankers do every day."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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