But we also know after this quarter that Netflix is the de facto worldwide gold standard for home entertainment and at $22 billion that's still -- sorry Reed -- cheap vs. the opportunity and the ability to raise price and negotiate more favorable deals from now on.
Yes, it does feel like 2003. Yes, this has become the ultimate caveat emptor stock. But yes, because of the way momentum investors evaluate stock, this one's good until its bad, it soars until it crashes. Remember, there are always a couple like this in the stock market, except this one's lasted far longer than most. Now that it is too big to be taken over by almost anyone, as opposed to when I wanted Apple (AAPL) to buy it for $12 billion, you buy the stock for once reason: because someone will buy it at a higher price than you.
Don't forget that rationale and you will be just fine.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long AAPL.Editor's Note: This article was originally published at 7:24 a.m. EDT on Real Money on Oct. 22.
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
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV