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Jim Cramer: You Buy Netflix for One Reason

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.

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