Buy Netflix stock on the next market downturn, says Jim Cramer

CNBC’s Jim Kramer advised investors on Wednesday to buy shares Netflix On the next market decline.

“You put it at the top of your shopping list, you wait for the next dip in averages…and then you pull the trigger,” he said.

His comments came after Netflix stock closed 13% higher on Wednesday I reported winning up and down in the third quarter results. The broadcasting giant revealed that it added 2.41 million net subscribers during the quarter, exceeding its forecast for 1 million new subscribers.

A quarter of Netflix’s production marks a potential turning point for the company, whose stock took a hit earlier this year after the company lost subscribers for the first time in more than a decade due to intense competition, password-sharing among users and persistent inflation.

Kramer said that while the company still faces macroeconomic headwinds such as the strength of the US dollar, it is cracking down on joint accounts and rolling out an ad-supported category, though he acknowledged that the measures likely won’t have a significant impact right away.

He added that the company expects 4.5 million new paying subscribers in the fourth quarter and significant free cash flow growth next year, cementing its revolutionary position for Netflix.

“I bet 2023 will look a lot better than 2022,” he said.