Jim Cramer Suggests Gogo Lost Business To ViaSat Because Of Netflix

Shares of Gogo Inc (NASDAQ: GOGO) were trading lower by more than 13 percent Friday after the company announced it has reached an agreement with American Airlines to "continue to provide service on a meaningful portion of the American fleet currently served by Gogo."

Investors heavily sold off the stock as the company's announcement implies it lost some orders to its main competitor, ViaSat, Inc. (NASDAQ: VSAT).

Shares of ViaSat on the other hand were trading higher by more than 3 percent.

Jim Cramer discussed Gogo's business during his daily "Stop Trading" segment. He recalled a time when he flew on a flight that had Gogo's broadband connectivity but was unable to connect to Netflix, Inc. (NASDAQ: NFLX)'s library of video.

Cramer continued that Gogo's lost orders with American Airlines for a new batch of planes. He added that when he flew on a plane that had ViaSat's broadband connectivity, Netflix was readily available.

"So this is about Netflix," Cramer concluded on the deal.