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Jim Cramer: This is the key to understanding Netflix

Netflix investors need to be in it for the long haul, something Canaccord Genuity emphasized in its research report, CNBC's Jim Cramer said Friday.

"They basically told you 'look, it's not going to run into the quarter; don't get excited about the quarter. I like this because it is a long-term story. This is about the idea that they're not going to have an existential crisis against all the other companies that we talk about," Cramer said Friday on "Squawk on the Street."

Canaccord initiated coverage of Netflix shares with a "buy" rating and a price target of $120. Netflix traded more than 5 percent higher on Friday, near $96.

"What I like about it … is it says subscriber growth should be strong in medium-to-long term; the next two quarters are less certain," Cramer said. "You should read this because you got to know what you own so when the next quarter comes out and it's not that good, you won't flip out and sell it."

Netflix's stock, one of the largest advancers of 2015, has struggled this year, falling more than 15 percent.

NFLX in 2016Source: FactSet