Investors should not turn bearish on Netflix's stock despite its most-recent downgrade, CNBC's Jim Cramer said Monday.
"They do have the right programming," Cramer said on "Squawk on the Street." "They're taking the world by storm. I think Netflix can raise its prices dramatically like Amazon Prime [or] like Costco and it wouldn't matter … I'm just not a bear on Netflix."
Cramer made his remarks after Evercore downgraded Netflix shares from "hold" to sell Monday morning, citing growing domestic competition. Evercore also reduced its target price from $450 a share to $380, while also reducing its consolidated operating income outlook on the streaming giant by 26 percent.
"I have trouble with this because this was an analyst who was not recommending [Netflix] when it was on the way up, and then had one of the absolute great runs," Cramer said. "This is a new thing I see analysts doing. 'We missed it, let's go to a sell.'"
Netflix's stock fell more than 3 percent Monday morning. Click here to see what the stock is doing now.