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Cramer: The one word that took Netflix down

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Cramer: The one word that took Netflix down

After Jim Cramer listened to the conference call for Netflix, he was left dazed and confused.

"If you weren't dazed and confused, too, then you obviously weren't on the Netflix conference call," the "Mad Money " host said.

Cramer has always said that it is essential for investors to listen to a company's conference call after earnings are released. Often it can provide clarity from management on how the company is really doing.

Unfortunately, the Netflix conference call was not fruitful for Cramer. The streaming company's shares fell more than 13 percent on Tuesday after it announced that it had missed subscriber numbers for the second quarter.

The first concern for Cramer was the frequent use of the word "un-grandfathered" on the call. He is always suspicious when a company creates a word that spellcheck doesn't recognize. Yet, somehow this nonexistent word dominated everything on the call, namely that subscribers who were grandfathered into Netflix did not renew their subscriptions ahead of a price increase.