Netflix Inc NFLX is trading lower Wednesday after the company announced worse-than-expected second-quarter financial results.
What Happened: Netflix reported quarterly earnings of $2.97 per share, which came in below the estimate of $3.15 per share. The company reported quarterly revenue of $7.34 billion, which came in slightly above the estimate of $7.32 billion.
Netflix said it finished the quarter with 290 million paid memberships.
Related Link: Could Earnings Mean Full Stream Ahead For Netflix Stock?
Why It Matters: Netflix has to continue to deliver great content amid increasing streaming competition, Jim Cramer said Wednesday on CNBC's "Squawk Box."
Cramer told CNBC that Netflix's financial results don't provide any reason to go buy the stock.
"I don't have a reason to buy the stock [and I] don't have a reason to sell the stock ... that's not good enough," he said.
Analyst Assessment: Credit Suisse analyst Douglas Mitchelson maintained Netflix with an Outperform rating and raised the price target from $586 to $643.
Deutsche Bank analyst Bryan Kraft maintained Netflix with a Buy rating and raised the price target from $575 to $590.
Morgan Stanley reiterated Netflix with an Overweight rating and a price target of $650.
NFLX Price Action: Netflix has traded as high as $593.28 and as low as $458.60 over a 52-week period.
At last check Wednesday, the stock was down 4% at $509.79.
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