Shares of two tech behemoths, Tesla (NASDAQ: TSLA) and Netflix (NASDAQ: NFLX), experienced a sharp decline on July 20, following the companies’ latest quarterly earnings reports, which were released just a day earlier.
Unfortunately, the reports disappointed investors, resulting in the most substantial one-day drops in several months for both firms.
However, despite the steep downswing in NFLX and TSLA stock prices and worse-than-expected quarterly reports, former hedge fund manager and TV personality Jim Cramer reiterated his bullishness in the two technology companies.
“But make no mistake, Netflix and Tesla are two of the greatest investments of all time, and I got nothing, heard nothing at all last night that makes me feel differently about them. All that has happened is that you’re going to get the stocks even lower, maybe a week or two from now,” Cramer said in the latest Mad Money episode on July 20.
Cramer says Tesla and Netflix are ‘not done going down’
Explaining why he remains bullish on Tesla and Netflix, Cramer said investors should not get too bothered by the recent declines, given that the two are very endurable companies.
Notably, he said that Netflix is in the process of transforming its business model into a streaming service that includes a cheaper subscription plan featuring advertisements.
Meanwhile, for Tesla, Cramer said the company’s CEO Elon Musk has “never been bound by the four walls of the quarterly report canvas,” adding that the electric vehicle (EV) maker’s dominance has further room to expand into new ventures such as self-driving cars, batteries, pickup tracks, and more.
In terms of their stock prices, the Mad Money host believes the downward pressure will remain as significant amounts of capital shift into other sectors.
“If history is any guide, they are absolutely not done going down for the moment. There’s plenty of big money rotating to other sectors and that tends to take two or three or four, maybe even five days.”– Cramer noted.
In a separate CNBC show, senior research analyst Michael Nathanson said on July 19 that Netflix shares are demonstrating a remarkably strong setup for the following 12 months, following a “real change in sentiment” toward the streaming giant’s stock.
Social media reacts to Cramer’s comments of praise for Tesla and Netflix
Shortly after Cramer expressed his opinion that TSLA and NFLX were the greatest investments, social media users wasted no time mocking his stance.
After his Mad Money appearance, Inverse Jim Cramer, a popular Twitter account that makes fun of Cramer’s stock market takes, published old videos in which the former hedge fund manager advised investors to sell Tesla.
– Cramer said in a 2010 Mad Money episode.
“You don’t want to own this stock, you don’t want to lease it, heck, you shouldn’t even rent the darn thing.”
While Cramer made a small fortune for himself after decades of investing, the 68-year-old TV host has faced persistent mockery on social media due to his poor stock predictions over the years.
Earlier this week, the investor said he feels more confident about Ford’s F-150 Lightning truck compared to Tesla’s Cybertruck, attracting a string of sarcastic, optimistic comments among Tesla fans.