Disney has more room to grow thanks to Bob Iger’s rebuild plan

Jim Cramer of CNBC on Thursday said he was optimistic. Disney after the company announced a major restructuring and cost-cutting plan.

Disney finally feels like it’s back on track. Although stocks have already made a monstrous jump since the beginning of the year, I’m betting that they can now have much more upside potential, [CEO Bob] Eiger is making a difference,” he said.

Disney announced a plan to lay off 7,000 employees, restructure the company and cut $5.5 billion in expenses on Wednesday during a first-quarter earnings conference call.

Activist investor Nelson Peltz told CNBC on Thursday that he is satisfied with Iger’s regressive actions and that Trian Fund Management’s proxy battle with the media giant is over.

Shares of Disney fell 1.27% to $110.36 on Thursday after climbing to $118.18 during the trading session. Shares are up about 27% this year.

Kramer, who has been highly critical of the work of former CEO Bob Chapek, said Iger has changed the company’s narrative to one that can achieve its goals.

“[Disney] could never have unlocked their value under the old regime because management seemed incapable of formulating a clear vision for the entire company,” he said. “But Eiger is simply the best storyteller.”

He also thanked Iger for pushing for Disney’s dividend to be restored by the end of 2023. The company suspended its dividend in early 2020 due to the Covid pandemic.

“That’s a huge sign of confidence from management,” Cramer said.

Disclaimer: Cramer’s Charitable Trust owns Disney stock.

Jim Cramer says Disney stock has more upside potential thanks to Bob Iger's recovery plan

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing free to help you build long-term wealth and invest smarter.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button