Sign Up

Netflix, Spotify Can Weather Economic Uncertainty Because Of Subscription-Based Models, Says Jim Cramer: Here's What Their Charts Indicate

Technology companies using a subscription-based business model are more likely to weather economic uncertainty amid the ongoing big-tech selloff, according to CNBC’s Jim Cramer. The charts of both Netflix Inc. (NASDAQ:NFLX) and Spotify Technology SA (NYSE:SPOT) showcase a bullish trend based on the Benzinga Pro data.

What Happened: Chartist Bob Lang‘s analysis, reviewed by Cramer, indicates positive outlooks for Spotify and Netflix, with potential for Roku Inc. (NASDAQ:ROKU). Cramer highlights their subscription models’ resilience amidst macroeconomic uncertainty.

"If I were to do this, I would buy common stock Spotify, I would buy common stock Netflix, and I would buy calls on Roku, that way I cut off my downside," said Cramer on his Mad Money show on Monday.

Why It Matters: Here’s an analysis of Netflix and Spotify’s daily charts.

Netflix

Netflix was higher by 9.62% on a year-to-date basis, outperforming many tech peers, highlighted Cramer. He says that its daily charts reveal a recent rebound with high volume and the MACD exhibits a bullish crossover, a significant positive signal.

According to the data from Benzinga Pro, NFLX’s share price of $971.99 apiece as of Monday’s close was trading above its short and long-term trading ...