Cramer: John Malone Made The Stronger Bullish Case For Netflix And Amazon

CNBC's David Faber earlier this month interviewed media tycoon John Malone, which "rocked" Jim Cramer's "whole investment world."

What You Need To Know

Malone likened Amazon.com, Inc. AMZN's business model to that of a "death star" that's moving into "striking range of every industry in the planet," Cramer said during a recent edition of his daily "Mad Money" show. But perhaps the biggest takeaway from the interview is that it's seldom an executive speaks about another company's business as they don't want to "step on anyone else's toes."

But in this case Malone, the chairman of Liberty Media, isn't stepping on any toes; rather he's complementing other businesses, including Netflix, Inc. NFLX, a first mover in the entertainment industry who achieved such tremendous growth by "directly to the talent."

Why It's Important

If Malone can praise Amazon and Netflix's business, then investors should appreciate Amazon and Netflix even more, Cramer said. The two companies are like "Big Brother" who "know you better than you know yourself," which creates a business model that makes it nearly impossible for anyone to compete with.

"Do we really think an international content distribution company with local artificial intelligence and the ability to make its own AI-driven programming should only be worth $83 billion?" Cramer said. "I could make a compelling case that this worldwide operator ought to be worth a lot more."

What's Next?

"After watching that interview with Malone, I've gotta tell you that, if anything, I think Netflix's stock is cheap at these levels and I think it can go higher," Cramer concluded. "Maybe much higher."

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