Cramer Says Buy Eli Lilly Now but Wait it Out for Netflix
TheStreet's Jim Cramer answers viewers' questions from the floor of the New York Stock Exchange. Morgan Stanley (MS) has taken a skeptical approach to Netflix's (NFLX) 'big data strategy' for producing original content. The bank's latest note pointed out that: 'Netflix is like any other network, with hits and misses, and we do not expect its data advantage to provide it with a better batting average.' So now that the company's 'secret sauce' has been cast into doubt, is it a good idea to buy Netflix before they report earnings or wait for a pullback? Cramer says: 'I would ask that you wait for Netflix.' Cramer thinks the stock is ahead of itself after the company announced it will charge new users a dollar more for its standard plan. A bargain to snap up right now is Eli Lilly (LLY) says Cramer, which is down 'an extraordinary amount.' The stock plunged on Monday after the pharmaceutical power house halted development of its latest heart disease drug in the final stage of trials. But there is more to Eli Lilly, according to Cramer; 'You want to own Eli Lilly for its diabetes drug, you want to own it for its Alzheimer’s formulation,' he said. 'If you can get it just under 80, just go buy.'
