In the console space, Microsoft may unveil the new Xbox successor on May 21, 2013. This could be another reason why shares are rising: investors are bidding shares up ahead of the release.Cramer was still bullish on Facebook (FB). Shares peaked at around $32 in January, 2013, and closed at $26.85 with a market capitalization of nearly $64 billion. The company is scheduled to report earnings on May 1, 2013. As Facebook pushes more ads to desktop users on the news feed, growth will ultimately demand on the mobile pages. Facebook recently announced “Home” on Android, and also wants to have the app available for Microsoft and Apple devices. To gain relevance in pitching local ads, Facebook is building more support for local searches for Graph Search. Graph Search was rolled out recently. Merrill Lynch thinks ads from Graph Search could generate $500 million per year. In the video content space, Cramer was bullish on Netflix (NFLX). Netflix rose 32% for the week after reporting quarterly results. On April 25, the company said in its letter to shareholders that it plans to raise capital, which is needed to fund the cost of producing original programming. Netflix already spends $2 billion a year on programming. Moody’s believes the debt for Netflix is positioned to be in the Ba3 rating category.
Written by Chris Lau