NEW YORK ( Real Money) --Could there be a more perfect result for a stock called Netflix (NFLX - Get Report), a stock with only six analysts in favor of it and 30 against? Could the stars align more closely for this stock, which has, at its core, a group of haters that live to be short the darned thing, not unlike those who shorted Amazon.com (AMZ) in the $100s three years ago?Netflix exists because people want to watch programming when they want on the device they want. Netflix succeeds because it is inexpensive. Netflix thrives because of the change in programming on cable and how much more people like cable shows than they do network shows except for a couple enduring comedies and some longer-running dramas. But because it stumbled and because it seemed to be out of money when it dropped below $100, it had become hated by people who either didn't understand it or dug in their heels rather than declaring victory as they might have on the long side. In short, it went from loved to hated faster than I have ever seen a stock travel that distance except the speed with which it is now loved again by owners and still needs to be loved by analysts. Hence how it could have such a huge move last night. Let's go over what Netflix did right that the Street didn't expect. First, when it screwed up and created that screwy plan to force adoption to online, the owners and the analysts figured that was the end of Netflix -- that users would be so angry they would switch to Amazon or Apple's (AAPL) iTunes. Editor's Note: This article was originally published on Real Money on April 23. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money. What people didn't understand, though, was that the Web was adapting so fast to high-speed at the same time that the tablet had been born that Netflix was simply too cool a product not to have. And when you compared it to cable, it's a real bargain, especially because, other than sports, who the heck cares when you watch something. Second, the mea culpa of management was dissed by Wall Street, but the customers loved it. The customers came right back. That wasn't in the playbook.
Cramer: Netflix Nails It
Apr 23, 2013 | 12:41 PM EDT
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas