Jim Cramer on the streaming war: Netflix's algorithms are brilliant

CNBC's "Squawk on the Street" team breaks down Netflix shares after the company reported earnings.

Just last year, Cramer was uncertain about how Netflix would match up against increasing competition in the streaming space as Disney rolled out Disney Plus. The host even talked about kicking the name out of the fabled ‘FAANG’ group of tech stocks.

Cramer’s sentiments have changed, especially in the wake of Netflix’s earnings call Tuesday when he heard more about CEO Reed Hastings’ focus on artificial intelligence to defend its place in the market. The host called AI Netflix’s “secret sauce” over rivals and found solace in its global growth, despite it having subscriber challenges in the domestic market.

“Netflix knows what you want before you want it,” he said. “Many companies claim they have AI ability. Netflix changes your life, or at least your viewing patterns.”

The stock fell nearly 4% Wednesday, on soft guidance in its quarterly report, and is virtually unchanged from a year ago. Cramer said Netflix shares are “overvalued” when considering its earnings prospects, but he thinks global growth justifies its $143 billion market capitalization.

For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://www.cnbc.com/pro/?__source=youtube

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

#CNBC
#CNBC TV

Видео Jim Cramer on the streaming war: Netflix's algorithms are brilliant канала CNBC Television