2 gems at the top of their game

Netflix and Halliburton plainly illustrate what's justifying this broad-market run.

By Jim Cramer Apr 22, 2014 11:13AM

(From top) Netflix Inc in San Jose Calif. & Halliburton manufacturing facility in Duncan, Okla. © MTP/Alamy; Robert Hughes/ZUMA PressWhen you listen to a Netflix (NFLX) call, you are sitting there thinking, "How can these guys be that good?"


Then you listen to a Halliburton (HAL) call and you say, "How can these guys be that good?"


Two calls. Two subjects. Two tours de force.


TheStreet.com logoNetflix is a plain-English company that has figured out that conference calls shouldn't be just about analysts trying to get help on their models. This is a much bigger-thinking company than that. Netflix is trying to explain why if you offer a superior product, be it Time Warner's (TWX) HBO or Amazon (AMZN) or anyone else, even Comcast (CMCSA), people will take it. But it has to be genuinely superior.


I love that Netflix goes into the viewing habits of customers. This company has actually thought about customers like good retailers do. It recognizes that people prefer to have all the content at once if they would like that content. Netflix also knows the foreign markets will work, because, well, they already work. Witness the comments about how "The Mentalist" is the No. 1 show in France. I'm surprised Netflix didn't mention that the French always loved Jerry Lewis. My favorite line: "The total addressable market over time are human beings that enjoy TV shows and movies, because everybody is going to be on the Internet."


Amazing, but these guys really get what we love, and they know that they offer something for everyone that is smart and tailor-made. The fact that "Orange Is the New Black" is theirs, and that it is huge, should not be lost on people. Netflix has the pick of the shows they want now. The only controversy I heard on the call had to do with why it didn't get "True Detective."


Now Halliburton.


I know: What does an oil-services company have to do with Netflix? How about that Halliburton is operating at the top of its game and scoring points everywhere domestically and internationally because it has the best technology and offers the best customer service? How about the fact that it is taking business from others simply because it offers a better suite of products for less?


When you hear the moaning that there isn't any revenue growth -- a constant refrain -- think of these two companies. Netflix and Halliburton are two gems that stick out in an earnings season that is justifying this run in the major stock averages.


Oh, yeah, I forgot. It is all Fed-induced.


My bad.


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Jim Cramer's Action Alerts Plus: Check out this charitable trust portfolio for the stocks Cramer thinks could be winners.





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22Comments
Apr 22, 2014 1:31PM
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"Oh, yeah, I forgot. It is all Fed-induced."

 

That's ok Bobo. We have grown used to your 24 hour loss of memory issue.

Apr 22, 2014 11:35AM
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I guess you can write about anything you want, Jim. Your blog comments will state the obvious-- day after day of market increases without ANY economic support, benefit, gain or reciprocation. It has to be obvious even to the likes of the mentally-challenged (Ivy League and Goldman Sachs alumni)... we are merely stuffing more explosives in an already densely-packed furnace room. I'm advocating hand baskets in lieu of Kool Aid. 
Apr 22, 2014 11:37AM
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Did you write this on the back of your napkin while at the donut shop this am Jim?  Not your best effort dude but you can't hit a home run every day so I give you a pass like I would expect for myself once in a while.  Have a good day.

Apr 22, 2014 1:25PM
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stick to reciting history because your picks are way behind the averages.......and by the way those of us who buy and hold the averages have more than doubled our money since 2009 with instant dividends , diversification,and lower risk .......keep trying with your risky gap down individual stocks...you'll beat us one year, sooner or later
Apr 22, 2014 4:18PM
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Take that back,  you balding oaf !!

The Mentalist is a good show.  It is far more entertaining
than this smoke-and-vapors column by a country mile.

Other than that, you're wrong.....Again !!

Apr 22, 2014 11:52AM
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An interesting bit of info I came across here yesterday.   A possibly believable story out of Japan saying the Federal retirement system there is willing to assume more risk to make more money and will enter into the stock foray and less into low interest bonds.  These low interest rates we see today offer more of a threat to our long term well being than I think many realize.  Herding everyone into one corral is not the smartest or safest move in my opinion.  Wall Street has been known to have their way with other peoples money.  Doing anything out of desperation is never ever the best plan in my opinion.  Also note that one of Americas neatest women has died. Adrianne Wadewitz has died in a rock climbing accident.  She made a difference in the world in her short life.  She was my idea of a true and wonderfull American.  Very much like my own daughter.   She was an editor of Wikipedia and made a difference in the world.  To have a dream and to love sharing her thoughts and work like she did with the world was way too cool.
Apr 22, 2014 3:23PM
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PE=198, Yea, right Jim. I'm going to go against Graham's advice and take yours!! Last time I bought a stock that went against Graham's book I lost my ****. Suggest you read the latest edition that came out in the early 90's.
Apr 22, 2014 9:31PM
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Be cautious tomorrow folks, be very cautious...There are reports of a Sasquatch being spotted near one of the Central Park's entrances.,,,,


Most days he has been lurking around the pretty stone bridges...

Apr 22, 2014 4:07PM
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Halliburton is an exemplary model of what happens when the GOP Tea Party Congress gives you billions in free and unneeded money from taxpayers and you then show your loyalty by moving your headquarters to a foreign country to avoid paying taxes here. It doesn't hurt that VP Cheney sent an armada over to protect their interests so they could continue to drill and get paid for exhorbitantly overpriced crude during yet another Republican war that we lost. If we only had back all the money stolen from us by BIG OIL and Bush/Cheney there would be a surplus, not $18 trillion in debt to repay. Redbox gets hit movies a lot sooner than Netflix and after a while Netflix isn't a bargain if all you can watch are B movies and reruns. Jim, your choices suck. You need to step it up because you are getting as bad as Warren Buffet when he missed the dot.com explosion. Stay in an S&P500 Index Fund or Blackstone (BX) AND sit back watching the Obama love pour in. Obama is the real Centrist Republican. S&P2000 is coming soon.
Apr 22, 2014 1:20PM
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cramer........why do you keep telling us what happened? what a hack
Apr 22, 2014 5:00PM
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don't listen to cramer he is paid by Obama to promote stocks of Obama's financial supporters.sooner or later these stocks will get the pull of gravity the only reason still sky high is because bail out banks have orders to buy them with people's deposits in the banks but anyday they may need to sell them to pay those deposits to the people.you never know when.also congress may investigate one day these illegal trades
Apr 22, 2014 3:15PM
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Stop with the "market" and going higher and that as it total and entire BS.  Gen X'ers beware and your offspring are being led to slaughter right now. You were spoiled and the boomers can take that in their now "collective" asses.  You have an entire and complete "idiot" in office.  For those that think he is "smart" do some checking.  50 years maximum and we are history as a nation and it is happening right in front of our eyes and younger generations are obvious to this.  China is buying up more and more.  Screw the "muslim" in office.  Do not want to the arguments, other. Done with the BS all over and will not be back, period.  Adios.
Apr 22, 2014 4:05PM
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Well, like we said earlier, decent day but do not trust this market being over 100 points up....Told you it wouldn't hold; manipulators regrouping and started to do their thing in the last hour.....Come on, not a great surprise, we've had several good days and these scumbags are pulling their hair out, the little they have left....Oh well, a positive day is a good day....Be cautious tomorrow, they will want to continue what they started this afternoon.
Apr 22, 2014 11:39AM
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Where are the JOBS, Jim? All these incredible financial reports... profits, proFITS, PROFITS, galore but family-sustaining wages and stability are no more. You can count the days now. What is on the road ahead? Pieces of fallen ivory towers and business platforms as far as eyes can see and not ONE "talented" executive able to one damn thing without support aids and assistance.
Apr 22, 2014 11:39AM
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The markets are running wild now. The gains come everyday but there isn't any economy and certainly 90% of America cannot sustain. 
Most of us believe our gutless moron in the White House figured out that we are on the same path of destruction each of the prior attempts took, and now he is simply printing because he is afraid the inevitability of it is catching up to him. It is here already.
1) Nancy Pelosi caught using financial information to do Insider Trading. A new law had to be made to stop this.
2) Debbie Stabenow overseeing the Derivative Debt market. It exceeds $1 Quadrillion now. Debbie-- if we taxed every person in the USA for 100% of earnings over the next 100 YEARS, we would still owe on this! You have no business in that role.
3) Janet Yellen- if she was truly smart, she would have mandated a 30% rate on business lending. The highest Risk rate for entities without viable assets, and capped the exposure.
4) Elizabeth Warren- writes a 1,003 page "instruction manual" on how to complete the mortgage application.
5) Kathleen Sibelius- puts together 2,900 pages of legalese healthcare no one in Congress reads before passing it into law. 

We don't need this. We need careers back for 90 MILLION Americans with actual skill sets, experience & ability. We need family-sustaining incomes. We need Bank Sweeps abolished. We need Big Retail removed from small rural areas so Free Enterprise can incubate, hatch and replace GARBAGE inherited business platforms.

If you won't get RID of righteous women and start acting to the benefit of America as ONE NATION, you will have to be impeached before the next elections. You have no business being where you are. You are anti-American and destroying us. 
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