Jim Cramer Says Two Streaming Stocks Stand Out After Netflix Collapse

CNBC’s Jim Cramer said Wednesday that investors should stay away from Netflix stocks and explore other options.

“Netflix seems lost at sea with no plan to find the shore, and I think its withdrawal was actually deserved. As for the other streaming games that were collateral damage, you have my blessing to buy those with the stocks cheap and sound fundamental,” the “Mad Money” host said.

Cramer said there were two streaming companies, in particular, that stood out for him.

“We bought Disney today for the Charitable Trust. … I like the rest of the business and I think the streaming service is taking a slice. I’m also intrigued, by the way, by Paramount Global,” said he declared.

Cramer also named Disney as a stock that can withstand the Federal Reserve’s tightening cycle.

Netflix reported a loss of 200,000 subscribers in its first-quarter results on Tuesday, the first time the streaming giant has lost subscribers since 2011, and forecast a loss of 2 million paid subscribers worldwide for the second quarter.

Shares of Netflix hemorrhaged 35% on Wednesday, hitting a new 52-week low earlier in the day.

Citing headwinds including the suspension of service in Russia and the sharing of passwords among users, Netflix also warned it could crack down on non-paying users. The company also said it was considering offering cheaper membership tiers with ads.

“I don’t think Netflix has much visibility into how business will go in the future, and they certainly don’t seem to have any plans to right the ship, at least not any time soon. I say no thanks” , said Cramer. .

Disclosure: Cramer’s Charitable Trust owns Disney stock.

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