Cramer says to go back to last week at this time, when Cowen and Stifel Nicolaus both upgraded Netflix and said the original content would drive a lot of subscriptions and the number would be much greater than expected. He says everything they said came to pass in Netflix's quarterly report Tuesday, "and that's how you make real money on Wall Street."
Cramer says Netflix is really not based on earnings, it's difficult to do a price-to-earnings multiple on it, and it's hard to figure out what the normalized growth is here. But he is certain that the company can get to 100 million subscribers, though he is not sure if they can do it by 2018.
Must Watch: Jim Cramer on Netflix's Breakout Quarter and Its Global Expansion
Netflix is talking about making material money in 2017, which a lot of people did not think would be possible because it spends so much on content. But Cramer notes Netflix made a good point on its conference call in that original content costs the company less than buying other people's content.
Cramer says this is a situation in which lots of people are shorting the stock, but he says it looks right now that the short story is wrong.