Jim Cramer’s Latest Lightning Round: Top 10 Stocks

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1. Netflix Inc (NASDAQ:NFLX)

Number of Hedge Fund Investors: 121

A questioner recently asked Jim Cramer whether he should hold, sell or decrease his stake in Netflix Inc (NASDAQ:NFLX) heading into 2025. Cramer recommended the investor to buy more Netflix shares.

“I would actually add a buy. You’ve got Squid Games 2 coming up, you’ve got the NFL game on Christmas Day, you have management being vastly superior, and you’ve got an ad tier that is just going to put a huge amount of money in the coffers of Netflix Inc (NASDAQ:NFLX). This company’s been consistently underestimated by Wall Street, and I think it is sensational.”

Polen Focus Growth Strategy stated the following regarding Netflix, Inc. (NASDAQ:NFLX) in its Q2 2024 investor letter:

“Finally, we trimmed Netflix, Inc. (NASDAQ:NFLX) mostly due to valuation but also as a source of funds to add to the new position in Shopify. As a reminder, we added to our position in August 2022 amid broad concerns about the company’s ability to grow and monetize shared passwords. We expected Netflix to show progress in monetizing shared passwords, leading to robust free cash flow generation. This is now playing out and is appreciated by the market. Hence, given the balance of growth and valuation, we felt it was appropriate to reduce our exposure to a more normal weight.”

While we acknowledge the potential of Netflix Inc (NASDAQ:NFLX), our conviction lies in the belief that under the radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NFLX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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