Investing 29-11-2022 17:29 14 Views

Cramer double downs on Disney shares as Bob Iger retakes the helm

Walt Disney Co (NYSE: DIS) has been in focus ever since Bob Iger returned as the Chief Executive of the entertainment conglomerate – a comeback that Jim Cramer says is reason enough to load up on this stock.

Jim Cramer is bullish on the new direction

Iger is committed to cutting costs and plans on sticking with the previously announced hiring freeze.

Cramer is particularly bullish on Disney shares after the new CEO reiterated the need for shifting focus in “streaming” from subscriber growth to profitability.

I like the pivot towards profitability [because then] you can mine that considerable library. This is a man who also understands the value of theme parks. He’s a serious business person who can’t stand the losses.

Iger also dismissed the narrative around an Apple-Disney merger as pure speculation. For the year, Disney shares are currently down more than 35%.

Guggenheim reiterates buy rating on Disney shares

Earlier in November, Disney reported broadly disappointing results for its third financial quarter and sounded dovish for the future as well. On CNBC’s “Squawk on the Street”, Cramer added:

The narrative on conference calls is no longer going to be, everything’s fabulous but we’re losing a fortune. That’s done. I’m talking about doubling down on [Disney shares]. That’s how much I like Iger’s work.

In his address to employees at the company’s headquarters in Burbank, California a day earlier, Iger also said that “creativity” has to be the top-most priority for the Walt Disney Co.

Also on Tuesday, Guggenheim recommended buying Disney shares as well.

The post Cramer double downs on Disney shares as Bob Iger retakes the helm appeared first on Invezz.

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