Jim Cramer Makes The Case For Disney Stock: 'It's Time To Retire The Obsession With Netflix'

Walt Disney Co DIS has been trading in sympathy with Netflix Inc NFLX ever since the mouse entered the streaming space, but Jim Cramer says the pair shouldn't move together. In fact, investors should just forget about Netflix altogether.

"It's time to retire the obsession with Netflix. Unsubscribe if you will," Cramer said Wednesday night on "Mad Money."

What Happened: Netflix reported better-than-expected earnings results and subscriber numbers this week. 

Netflix previously guided for a loss of 2 million subscribers in the second quarter, but the streaming company reported a loss of just under 1 million. Netflix said it expects paid net adds to increase by about 1 million in the third quarter. 

"Sure they did better than feared, but the absolute number was horrific. They lost a million subscribers for heaven's sake," Cramer said.

Why It Matters: Investors should turn to Disney instead, he said. The stock has been dragged down alongside Netflix and investors have placed it in the penalty box because of decisions under former management like the Fox Media deal, Cramer said. But, Disney has so much more to offer. 

"Under [CEO Bob] Chapek's leadership, Disney's theme parks have become total juggernauts. They make fortunes for the company, yet nobody even seems to care," he said. "How much does Netflix make from its theme parks?"

This is the main problem that Cramer focused on Wednesday night. He believes that Netflix has too much competition. The big tech companies have been able to launch streaming platforms that easily compete with Netflix, he noted.

"[Netflix] feels like it could be built from scratch by anyone with enough money ...  but there's no way to build Disney from scratch is there? I mean it would take decades to try to attempt. In short, Netflix simply isn't as important as it used to be. Obsessing over its performance is a waste of time. I bet the paycheck on Chapek," Cramer said.

NFLX, DIS Price Action: Netflix was trading 1.6% higher Thursday afternoon at $219.91, while Disney was up 0.53% at $103.90.

Photos: Tumisu and Skitterphoto from Pixabay.