Tech

Cramer: Netflix earnings show 'you don't get to be FANG for nothing'

Key Points
  • Netflix's earnings results show it's a behemoth stock, Jim Cramer says.
  • "You know you don't to get to be FANG for nothing," he says.
  • Netflix says it added 5.2 million additional memberships in the last quarter.
Jim Cramer 'hooked' on Netflix
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Jim Cramer 'hooked' on Netflix

The results of Netflix's latest quarter show why it's a behemoth stock, CNBC's Jim Cramer said Tuesday.

"You know you don't to get to be FANG for nothing," he said on "Squawk on the Street."

Cramer spoke a day after the stock of the video-on-demand service surged in after-hours trading following its second-quarter earnings release where it reported 5.2 million additional memberships, 2 million more than Wall Street expected.

It reported revenue came in at $2.79 billion versus a $2.76 billion consensus estimate from Thomson Reuters.

Shares of Netflix were at all-time highs Tuesday. The streaming giant is one of the market's best-performing names as it has rallied more than 30 percent this year through Monday.

"Facebook figured out you use the internet to be able to tell personal narratives. Amazon figured out you use the internet to sell merchandise. Google figured out the internet to be able to do YouTube short form. These guys figured out the internet by being able to produce content that is loved in Korea and loved in Brazil and loved in Europe," Cramer said.

"This is [an] intellectual opioid," he said.

Regarding Netflix CEO Reed Hastings, Cramer said he was uplifted by Hastings' conference call and found it to be a "joyous" experience.

"I come back after a hard day and just like it," he said.