NEW YORK (TheStreet) -- Shares of Netflix  (NFLX - Get Report) were crushed Thursday after the company's third-quarter earnings report in which the streaming video service reported far fewer new subscribers than analysts had expected.

TheStreet's Jim Cramer says the announcement of HBO's competitive service had little to do with Netflix's decline Thursday. He points to the raised expectations about Netflix in the days prior to the earnings report that got people thinking about a big short squeeze that turned out not to be true.

Cramer says Netflix historically tends to correct the course when it screws up, but investors did not like the conference call, nor do they like that HBO would soon offer a competitive product. Cramer calls it a cold stock, and if a cold stock misses, then investors must wait for another quarter for it to come back. Therefore, he does not recommend Netflix here.

Must Watch: Jim Cramer Says the Big Issue for Netflix is Expectations, not HBO

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