There was also "a little bit too much enthusiasm" after Monday's closing bell, when Netflix reported earnings that beat forecasts, Cramer said Tuesday on "Squawk on the Street."
Shares of Netflix were up slightly Tuesday morning, trading around $203 per share.
In its earnings statement Monday, Netflix posted revenue that was essentially in line with forecasts, and reported better-than-expected subscriber growth even as competition intensifies in the streaming video content market.
In a post-earnings conference call, CEO Reed Hastings said the company's focus is on "doing even better content, getting better partnerships, better mobile streaming."
"The overall unbelievable theme of the analysts — even though they all raise price targets — is how long can this go on?" Cramer said. "I point out it can keep going on because it's an $80 billion company that represents the only international TV network worth $100 billion."
"Let the traders knock it down and long knives be out and then pick it up," Cramer added.
Wall Street firm Piper Jaffray reiterated its overweight rating for Netflix on Tuesday and raised its price target on the shares to $240 from $215. Goldman Sachs also increased price its forecast.