Cramer says Netflix is down Tuesday because it just met Wall Street's expectations instead of blowing them away. But he thinks investors should take a look at the stock again once it drops below $400 because he thinks it could become an acquisition target. Furthermore, Cramer thinks Netflix's $7.7 billion in obligations is what's causing investors to freak out, rather than the 50 million subscriptions.
TheStreet Ratings team rates Netflix as a "hold" with a ratings score of C+ with the following commentary:
"We rate NETFLIX INC (NFLX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."
You can view the full analysis from the report here: NFLX Ratings Report
Cramer notes Chipotle had the best restaurant retail number so far this year, largely because they are natural and organic, which appeals to younger people. Chipotle specifically mentioned teen males as the group that is doing well and sales in California are "like shooting fish in a barrel." Cramer says this was "a remarkable quarter from a remarkable company."CMG data by YCharts