Jim Cramer Says Netflix “Too Cheap” To Overlook As Deutsche Bank Upgrades Stock To Buy
Jim Cramer endorsed Deutsche Bank's upgrade of Netflix (NFLX) to 'buy,' citing its international exposure and valuation at 18 times 2027 earnings. Shares are down 41.71% over a year. Deutsche Bank argues market focus on time spent overlooks addressable market and engagement. Steve Eisman expressed growth concerns, while Netflix reported Q2 revenue of $12.56B and announced Q3 guidance.
How this was made
The 30-second read
Why it matters
The upgrade may prompt short-term buying pressure, especially in pre‑market trading, as investors reassess valuation.
Market read
Analyst upgrade and high‑profile endorsement could move Netflix stock in the near term.
What to watch
Potential headwinds from content costs and competition could limit upside despite the upgrade.
Background
Jim Cramer highlighted Deutsche Bank's upgrade of Netflix to Buy, noting a low 18x forward earnings multiple and international exposure as undervalued.
Ticker impact
Deutsche Bank upgraded Netflix to Buy and Jim Cramer endorsed the upgrade, citing a 18x 2027 earnings multiple as cheap.
likely upward pressure as investors price in the upgrade
Analyst upgrade with a clear valuation thesis can trigger buying interest.
Market effects
Streaming sector may see renewed interest as a leading player is deemed undervalued.
U.S. equity markets could see modest gains in media/entertainment stocks.
Limited to Netflix and comparable streaming peers.
Counterpoint
Some analysts argue growth is slowing and price increases may be needed, tempering upside.
Key entities
- analystDeutsche Bank
Upgraded Netflix to Buy with a valuation thesis.
- media personalityJim Cramer
Endorsed the upgrade on CNBC.