Don't try to read Steve Jobs' mind
Buy Netflix because of the stock's fundamentals, not because you think Apple is going to acquire it.
By Jim Cramer, TheStreet
To those who are buying Netflix (NFLX) in anticipation of Apple's making a bid, I say good luck. There are some very serious insider sellers who I have to believe would know about any talks, and I have to believe they wouldn't be selling otherwise.
I don't think Apple would do anything that isn't consensual, so the notion that these people would be oblivious to a deal is pretty ridiculous, and the Netflix board is a very active and supportive board.
I think you buy Netflix because of its model and because customer acquisition costs are going down as subscriber numbers are soaring.
Others are speculating that Apple might purchase Electronic Arts (ERTS). Why? That company has one good business, the Playfish biz, and the rest is all about games that could go away. Why would Apple want content anyway? There's nothing that indicates that it wants to be in the content business other than its own software.
I think that Apple is such a big thinker that what Steve Jobs might do with the money is going to elude us. I am not saying he is some sort of an unfathomable sphinx, and I like the combination of Netflix and Apple very much.
But I think you will lose more money than you'll make speculating on what Apple will do.
Buy stocks with good fundamentals. Not stocks you think Jobs wants. Anything else can be a sucker's game.
At the time of publication, Cramer was long AAPL.
Click here to follow Cramer's trades for his Charitable Trust.
No matter what company or companies Apple buys they will manage it into the ground...Jobs is arrogant enough to think he can manage any kind of company. The Apple products are razzle dazzle products with proprietary software....it is almost a cult following of customers. The stock is overpriced and the stock price is way too dependent on Jobs health. It is a stock I wish I had bought when it was at $80 because of the money I could have made but it is not a company I want to own a product from.
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