CNBC's Jim Cramer on Monday explained why he's staying optimistic on Netflix , examining the bull and bear cases for the streamer by reviewing two recent analyst notes.
Cramer compared reports from analysts at Barclays , who downgraded Netflix, and Piper Sandler , who upgraded the stock.
According to the team at Barclays, Netflix may have trouble meeting its earnings goals, and the company's "growth algorithm will come with tradeoffs."
And even if the streaming giant hits revenue targets, the analysts said Netflix's valuation assumes it can double its subscriber base, which "seems unrealistic."
The analysts said Netflix can grow its subscriber base and has pricing power, adding that they're optimistic on the streamer's advertising potential.
Persons:
CNBC's Jim Cramer, he's, —, Cramer, Piper Sandler
Organizations:
Netflix, Barclays