CNBC’s Jim Cramer on Thursday said that he’s bullish on Disney after the company announced a robust restructuring and cost-cutting plan.
“Disney finally feels like it’s back on track. While the stock’s already had a monster move since the beginning of the year, I’m betting it can have a lot more upside now that [CEO Bob] Iger’s turning things around,” he said.
Disney announced a plan to lay off 7,000 employees, restructure the company and cut $5.5 billion in costs on Wednesday during its first-quarter earnings conference call.
Activist investor Nelson Peltz told CNBC on Thursday that he’s satisfied with Iger’s turnaround moves and that Trian Fund Management’s proxy fight with the media giant is over.
Shares of Disney closed down 1.27% at $110.36 on Thursday, after climbing as high as $118.18 during the trading session. The stock is up about 27% this year.
Cramer, who has harshly criticized former CEO Bob Chapek’s performance, said Iger has changed the company’s narrative into one that can execute its goals.
“[Disney] could never unlock their value under the old regime, because management seemed incapable of articulating a clear narrative for the whole company,” he said. “But Iger is just such a better storyteller.”
He also applauded Iger for pushing to reinstate Disney’s dividend by the end of 2023. The company suspended the 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 shares of Disney.
