TheStreet's founder while at the New York Stock Exchange Thursday said of the four companies that make up the "FANG" stocks -- Facebook, (FB) - Get Report , Amazon (AMZN) - Get Report , Netflix and Google parent company Alphabet (GOOGL) - Get Report , it is the online streaming company that has him least impressed. The reason? China.
Netflix confirmed to Reuters Thursday that it is continuing to look into the possibility of entering the country, but Cramer isn't buying it.
"Well, they've said it before, they thought that Crouching Tiger Hidden, Dragon 2 was going to be the opening that they needed for China, go back and read the statements, one of the reasons why Netflix has been in a funk is because they did over-promise and did under-deliver on China," he said. "I think that that's really hurt them, and this kind of foray that they're talking about now, I don't believe it until I see it."
He also gave a nod to Alphabet, which, like Facebook, is part of his Action Alerts Plus Charitable Trust Portfolio, acknowledging that while the going may be slightly tough for the company lately, it's not as bad as Netflix.
"I am not, by the way, as anti-Alphabet as everybody else. I know Alphabet's not going to have a good quarter," he said. "But I do think that Netflix had a little bit of a move here. Netflix, why you would own that is for Disney programming in the second half. But it's become hated, because they did miss the quarter. And it's in the penalty box."
Netflix is trying to counter slowed growth in the U.S. by upping global expansion, though its efforts have yielded mixed results. In April, Netflix forecast subscription growth in the U.S. and internationally that was weaker than analysts' estimates and shares plummeted.
Netflix shares have underperformed thus far in 2016. The stock is down about 20% year-to-date but was up slightly by 0.34% to $91.37 at midday trading Thursday.