Netflix was the clear winner of FANG last year — Jim Cramer's acronym for Facebook, Amazon, Netflix and Google, the parent of Alphabet— up more than 100 percent in 2015. Unfortunately, that all changed in 2016, with the stock down 12 percent for the year.
"After months of underperformance, Netflix has been bouncing back over the last week, and I think it's got more room to run," the "Mad Money" host said.
In the past week, the stock has finally come roaring back with what Cramer called a "potent bull case."
The first reason is that Netflix still has enormous potential to expand overseas. Additionally, now that it has 81.5 million subscribers, Cramer believes it can make a fortune even if it raised the price a little bit.
Netflix's investments in content are generating strong programming. The last reason why Cramer is riding with the bulls on Netflix is that it signed an exclusive deal with Disney, which will kick in this fall. Netflix will be the only streaming platform to offer movies from Disney, Marvel, LucasFilm and Pixar.
"This is huge, and while Netflix may be paying Disney $300 million a year for these rights, I think they will be worth every penny," Cramer said.
As for Disney's stock, Cramer advised investors to be patient and look the long term. He thinks Shanghai Disney could be big for the company, and warned not to get distracted.