"For a lot of investors,
represents a wealthy company that has a vital product; in this case, an operating system," Jim Cramer told his
Netflix Rises as Credit Suisse Sees Subscriber Growth Normalizing
Netflix was upgraded to outperform with a $586 price target at Credit Suisse, which expects subscriber growth to normalize.
"RealMoney" radio show Friday.
But consider the following: Even though Microsoft has enormous financial and creative resources, Cramer said, over the past few days it said it will spend billions to explore ventures outside of its Windows and Vista operating systems
He said that the company, which he owns for his
ActionAlerts PLUS charitable trust portfolio, is a very profitable company. But it has never been successful outside of its core products, i.e. its operating systems business.
Microsoft knows that online advertising is the way of the future, but its MSN site is not loved, Cramer said.
dominate the Web, he said.
"If Microsoft is serious about wanting to be in this business, it will have to buy Yahoo!," Cramer added. He also owns Yahoo! for
ActionAlerts PLUS. Otherwise, he said that the move to online will be "another failed attempt to be big away from Windows."
He told listeners that the move to beef up its MSN division will not make Microsoft a decent stock to own.
Cramer said that he has been negative on
for a long time, and that now people are giving up on the company left and right.
The company owns PayPal and Skype, a VoIP (voice over Internet protocol) services company. The stock is at a 52-week low, and analysts are recognizing that it's not growing the way it used to.
Cramer said that a downgrade is likely to come in a few days, and that when that happens and the stock falls, it's time to go in and buy.
eBay's long-term growth is 27%, but the company sells at only 1 times its growth rate, he said. There is room for the stock to go higher, but he would not buy the stock until after it's downgraded.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
At the time of publication, Cramer was long Microsoft and Yahoo!.
James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click
here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click
here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict."