Buy shares of Netflix on the market’s next pullback, Jim Cramer says

CNBC’s Jim Cramer on Wednesday advised investors to pick up shares of Netflix on the next market dip.

“You put it on the top of your shopping list, you wait for the next pullback in the averages … and then you pull the trigger,” he said.

His comments come after Netflix stock closed up 13% on Wednesday after it reported a top and bottom line beat in its third-quarter results. The streaming giant revealed that it added 2.41 million net subscribers during the quarter, topping its forecast for 1 million new subscribers.

Netflix’s quarter represents a possible turning point for the company, whose stock took a blow earlier this year after the company lost subscribers for the first time in more than a decade due to intensifying competition, password sharing among users and persistent inflation.

And while the company still faces macroeconomic headwinds such as a strong U.S. dollar, it’s cracking down on shared accounts and rolling out an ad-supported tier, Cramer said, though he acknowledged the measures likely won’t have a huge impact right away.

He added that the company forecasts 4.5 million new paid subscribers in the fourth quarter and substantial growth in free cash flow next year, strengthening his bull case for Netflix.

“I’m betting 2023 will look a lot better than 2022,” he said.