More Squawk from Jim Cramer: Netflix (NFLX) Needs to Crack into Movies
NEW YORK (TheStreet) -- Shares of Netflix (NFLX) - Get Report are advancing 0.67% to $99.11 late Monday morning ahead of the company's 2016 second quarter earnings due out after today's closing bell.
TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning that Netflix still hasn't been able to crack into the movie business.
"They are a long-form TV that needs to crack into movies I think to go to the next level. That's what I want to hear about," Cramer added.
The Internet streaming service has been very weak with feature releases that don't go to theaters, Cramer said, noting you don't hear much about those releases.
"You need to hear they are more than just a long-form series," he added.
Cramer mentioned that Netflix has a new movie "War Machine" coming out and starring Brad Pitt.
"$60 million. They're starting to spend a lot of money," Cramer said. "We need them to be able to break out War Machine."
"What I'm looking for is some other way for Netflix to inspire signups," Cramer added in the above video.
After the closing bell, Wall Street is expecting Netflix to report adjusted earnings of 2 cents per share on revenue of $2.11 billion. Last year, the video streaming service earned 6 cents per share on revenue of $1.65 billion.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and increase in net income.
But the team also finds weaknesses including generally higher debt management risk, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: NFLX