Investors should take advantage of the decline in Netflix’s stock, Cramer said Tuesday.
Homegamers should have faith that management did the right thing in raising prices of its DVD and streaming online content service, the “Mad Money” host said. Cramer praised CEO Reed Hastings. In addition, this stock is not overvalued. When you consider the valuations of LinkedIn at $10 billion, for example, you have to wonder if this stock isn’t actually cheap.
A lot of investors are worried customers may cancel their subscriptions due to the price hike, but Cramer isn’t too concerned. He has faith in Hastings and Netflix’s future prospects.
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