CNBC’s Jim Cramer said Thursday he was optimistic about disney after the company announced a strong restructuring and cost reduction plan.
“Disney finally feels like it’s back on track. Although the title has already seen a monster move since the start of the year, I bet it can have a lot more upside now than [CEO Bob] Iger is changing things,” he said.
Disney announced a plan Wednesday to lay off 7,000 employees, restructure the business and cut costs by $5.5 billion during its first-quarter earnings conference call.
Activist investor Nelson Peltz told CNBC on Thursday that he was happy with Iger’s turnaround and that Trian Fund Management’s proxy battle with the media giant was 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 was harshly critical of former CEO Bob Chapek’s performance, said Iger had changed the company’s narrative into one capable of achieving its goals.
“[Disney] could never unlock their value under the old regime, as management seemed unable to articulate a clear narrative for the whole company,” he said. “But Iger is just a better storyteller.
He also applauded Iger for pushing to restore Disney’s dividend by the end of 2023. The company suspended the dividend in early 2020 due to the Covid pandemic.
“It’s a huge sign of confidence from management,” Cramer said.
Disclaimer: Cramer’s Charitable Trust owns Disney stock.
