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Morning Bell With Jim Cramer: There Is No Joy in Netflix

TheStreet's Jim Cramer says Netflix needs to bring back the joy to its earnings call.

Stocks were mixed Thursday as optimism about earnings and the economic recovery was outweighed by a surprising jump in U.S. unemployment claims.

TheStreet's Jim Cramer turned his experienced eye toward Netflix  (NFLX) - Get Netflix, Inc. (NFLX) Report and the FAANG phenomenon.

Netflix: 'Show Me Stock'

Netflix missed on earnings expectations despite reporting global net subscriptions ahead of estimates.

The streaming giant reported earnings of $2.97 a share on revenue of $7.34 billion. Analysts were expecting the company to report earnings of $3.18 a share on revenue of $7.32 billion. 

“If you focus on Netflix, you’re missing the bigger picture of corporate America doing very well,” said Cramer, who maintained he's been "a huge backer of Netflix for ages."

Cramer told Action Alerts PLUS senior analyst Jeff Marks that the company's earnings call didn't make Netflix seem like the growth stock it has been in the past. 

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He said he did not like the company's plans to introduce video games offerings with its streaming service.

FAANG: 'Return the Joy'

"We've got to be a little more circumspect about Netflix as being a classic growth stock," he said. "I feel Netflix has become a 'show me' stock. But that's just it. They've shown me in multiple cases.

Cramer noted that competition was catching up with Netflix, noting that "there are so many hours." 

Cramer, who created the FAANG concept, said he isn't ready to pull the "N" and replace it with the "M" for Microsoft  (MSFT) - Get Microsoft Corporation (MSFT) Report just yet.

Cramer said the Netflix analyst call was "the least joyful call I can remember."

"It was always a joyous call," he said. "When they return to joy, we have a winning stock."