The Walt Disney Co (NYSE: DIS) down 30% for the year is a great opportunity to buy a quality name at a deep discount, says the Mad Money host Jim Cramer.
Cramer’s remarks on CNBC’s ‘Squawk on the Street’
Disney is scheduled to report its Q1 results on the coming Wednesday. Explaining why he loaded up on the stock ahead of earnings, Cramer said on CNBC’s “Squawk on the Street”:
I think people are missing the fact that it’s not a two-legged stool. It’s not just theme parks and ESPN. It has the movie division. They make movies and people go to them, $400 million worth. So, I’m a buyer right here.
Disney’s Doctor Strange in the Multiverse of Madness grossed $187 million over the weekend, securing 11th spot on the list of biggest domestic openings of all time.
Disney Q1 earnings preview
Cramer also has confidence in the leadership of CEO Bob Chapek. The mass media and entertainment conglomerate is expected to report 54 cents of adjusted EPS for the first quarter.
Analysts forecast Disney+ to see a further slowdown in subscriber growth this quarter, even after the launch of a cheaper tier in March. Revenue from Parks, Experiences and Products is seen climbing 80% in Q1.
Last year, Disney acquired 21st Century Fox in one of the biggest media mergers ever. Investors are interested in finding out if the $71 billion deal results in a write down this quarter. The stock trades at a PE multiple of 64.
The post Cramer explains why he loaded up on Disney ahead of earnings appeared
