Tesla and Netflix Experience Periodic Swoon, but Recovery Expected: Jim Cramer

Summary:

• Tesla and Netflix experience periodic sell-offs despite being top-performing stocks in recent years.
• Netflix reports impressive subscriber numbers but faces doubts about the sustainability of its expensive stock.
• Tesla's significant spending on self-driving technology raises concerns among investors.
• Both companies have a history of bouncing back from downturns, instilling confidence in their long-term prospects.

Jim Cramer remarks on the recent performance of Tesla and Netflix, two of the best-performing stocks in the last 15 years, experiencing a periodic swoon in their stock prices. However, history suggests that these tech giants have a track record of bouncing back with force.

Both Tesla and Netflix released their latest financial results, which were met with mixed reactions on Wall Street. Netflix showcased impressive subscriber numbers, attributed in part to a crackdown on password sharing. However, its tepid forecast raised concerns about the sustainability of its expensive stock. On the other hand, Tesla, led by the visionary Elon Musk, discussed significant spending to establish itself as the dominant fully self-driving car company. Musk justified the expenses by emphasizing the potential safety benefits of self-driving technology and the possibility of future revenue streams through licensing deals with other auto companies. Despite these promises, some investors remain skeptical about the large-scale investment in relatively unproven technology.

While the current sell-off might give some investors pause, Tesla and Netflix have proven their resilience time and again. Investors and tech enthusiasts will keep a close eye on how these companies navigate the challenges ahead and capitalize on their innovative endeavors.