Netflix just announced a deal with DreamWorks, causing CNBC's Jim Cramer to say there's value down the road for the company.
Netflix is reminding investors that it will not be ignored, to paraphrase Glenn Close’s character in the Viacom-owned film, “Fatal Attraction”. After Viacom left Netflix for Amazon, Netflix is fighting back with its largest content deal ever. And, yes, this involves rabbits, too – computer generated ones.
Netflix struck a deal with DreamWorks Animation. Among the terms, the film company will provide 300 hours of programs to Netflix. CNBC’s Jim Cramer believes this is part of a Netflix’s longer-term strategy.
Speaking to CNBC’s Squawk on The Street, Cramer says, “When you look at what Netflix has done, they lock up companies, they lock up this business, and then they become more valuable versus iTunes…. [Netflix CEO] Reed Hastings is thinking 10 to 15 years out. He gets kids hooked on Netflix.”
Cramer is optimistic about Netflix’s future but should you be?
CNBC contributor Steve Cortes, Founder of Veracruz TJM doesn’t think so. “Not only is it not time to buy Netflix, I think it’s time to look to bet against Netflix,” says Cortes. That’s what I’m doing.”
On the other side of Cortes is CNBC contributor Richard Ross, Global Technical Strategist at Auerbach Grayson. Though he cites different reasons than Cramer, Ross is a Netflix bull. “Based upon the technicals, this stock is a compelling buy on a risk-reward basis."
Are Ross’ charts compelling enough to buy this stock or is Cortes right? Watch the video above to see the charts, hear the arguments, and decide for yourself.
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- Jim Cramer