Jim Cramer, the well-known host of CNBC’s “Mad Money,” has expressed notable optimism about The Walt Disney Company (NYSE: DIS) stock, labeling it “undervalued” and heralding it as a “big winner” as the company shifts back to its fundamental roots of family-friendly content. Cramer urges investors to discard recent doubts surrounding Disney and instead focus on the company’s promising turnaround narrative.
Cramer, highlighting the upcoming release of the family-oriented film “Lilo & Stitch,” describes this renewed focus as a significant indicator of Disney’s potential growth. He pointed out that unlike previous leadership, which he characterized as “divisive,” the current strategy embraces universally appealing and non-political themes, which he believes will resonate well with audiences.
Reflecting on Disney’s recent stock performance, Cramer noted a dramatic rise from $82 to $112 within a month, primarily fueled by strong results from theme parks and profitable sports entertainment deals. “People were initially skeptical, questioning the pricing of park experiences and the reception of films,” he noted. However, he argued the recent quarter’s robust results have validated the company’s strategy and proven critics wrong.
Cramer’s enthusiasm extends beyond film content; he underscores the enduring value of Disney’s extensive intellectual property portfolio, which he views as a powerful asset that continues to drive revenue through various channels including film, streaming, and merchandise.
In addition, Cramer has advised his investment club members to consider buying Disney stock, revealing that his charitable trust also holds shares. He emphasized the missed opportunities for those who have doubted the company’s potential and believes that Disney’s transformation signals resilience and long-term value.
Overall, Cramer’s positive outlook on Disney’s future presents a hopeful scenario for investors, portraying the company as capable of rebounding strongly in the entertainment sector. As Disney returns to its core values and focuses on family-oriented storytelling, the potential for growth appears promising.