Buy Netflix (NFLX): (S), (VZ), (AAPL) Says Cramer

Investing pundit Jim Cramer says he believes companies like Sprint Nextel (NYSE:S), Verizon Communications (NYSE:VZ) or Apple (NASDAQ:AAPL) should take a serious look at acquiring in Netflix (NASDAQ:NFLX).

Cramer said, "The combination of Apple’s iPad — the ultimate viewing device — and Netflix’s video library may be all we need. I say, if you can't beat 'em, then join 'em."

While in the short term Netflix has a lot of potential, in the long term I don't see any moat they have to protect them from streaming video becoming a commodity.

Most people could care less who provides the streaming, and it's questionable as to how many deals Netflix could afford to make in proprietary programming which could truly be a differentiator.

Cramer says he sees no competitors for Netflix, but that's only if you look at the short term.

Any company like Amazon.com (NASDAQ:AMZN), Apple, or even Wal-Mart (NYSE:WMT) could roll out a streaming service which would be extremely difficult to compete with by a smaller company like Netflix.

It's inevitable that a huge player enters streaming video in a big way, and it's not clear that Netflix would have the ability to compete with them in any way, other than their base physical disk deliveries, which will always have a demand, although a diminishing one.

The best thing for those holding shares of Netflix at this time would be for a company to acquire them, as it may be the last big chance to make a lot of money on the company before it starts its long road downhill.




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