CNBC’s Jim Cramer on Wednesday crowned Bob Iger for his stewardship of the Walt Disney Company.
“This is Bob Iger’s day. This is the day where all of us who believed in Iger’s leadership and Disney’s amazing brands made out like bandits,” the “Mad Money” host said. “Not long ago, Iger told me ‘we’re just getting started,’ and I say ‘it’s still not too late to join him on his ride of a lifetime.'”
The comments come after the entertainment conglomerate revealed that the new Disney+ streaming service registered 10 million subscribers within the first day of its initially faulty launch. Disney expects to have between 60 million and 90 million subscribers by 2024 in the company’s quest to challenge Netflix for king of stream in the video category.
“Today we got the real number. It’s more than 10 million. That’s double my prediction, and I was the biggest bull out there,” Cramer said.
The stock popped 7% on the news, and the Dow Jones Industrial Average cruised more than 92 points higher to 27,783.59 for another closing high. The S&P 500 also set another record after inching to 3,094.04. The Nasdaq Composite was the odd ball dipping almost 4 points to settle at 8,482.10.
Cramer said investors get these kinds of gains when a chief like Iger is married to a brand like Disney’s. Iger has led Disney since 2005.
Under Iger’s tenure, the company has not been immune to hiccups. Disney’s theme parks have faced challenges and sports streaming service ESPN+ managed to gain just about 2.4 million subscribers in the first year after an April 2018 launch.
“But that’s when you had to put your trust in Iger’s leadership,” Cramer said, before saying investors must have the “right mix of skepticism and belief.”
“You should never be on autopilot because things do go wrong,” he added.
After rallying about 27% within the first four months of 2019, Disney shares traded relatively flat over the next six months, according to FactSet. Shares have surged more than 13% in the month of November alone and are up over 36% to $148.72 year-to-date.
“If you believed in Disney, you have been amply rewarded, and, you know what, I bet it’s got more upside, even after today’s phenomenal run,” the host said.
Disclosure: Cramer’s charitable trust owns shares of Walt Disney.
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