Analyst Jim Cramer Says Don’t Sell Disney
CNBC’s Jim Cramer says, “I like Disney [Stock] a great deal…”
Look out kids. Disney’s stock price is going on a roller coaster ride; a thrill ride belonging to one of it’s iconic theme parks.
Today, after hitting an all-time high on Friday, shares of The Walt Disney Company dropped over $6.
“UGH,” says the guy with 11.5 shares.
And I am sure you may amplify that by the number of shares owned by wealthier investors.
However, fear not Mouse magnates.
CNBC’s Jim Cramer (he of the Mad Money show) told viewers to hang on. He thinks the news cycle will soon drive investors to move toward “stay-at-home” stocks.
CNBC.com’s Tyler Clifford posted:
Image: Google.
He noted stocks like Amazon, the ultimate shop-from-home stock, which had a 1.74% gain in the past three months… [Then] the internet giant’s stock rose 1.30% on Monday. Shares of Adobe and Twilio, two companies linked to the digital transformation, also posted 2% gains.
The rotation out of the recovery plays and into the stay-at-home stocks was best illustrated by the disparate moves in Disney and Netflix, Cramer said. While Disney competes with Netflix in streaming, the company has a large exposure to the tourism economy as well as the movie industry, contributing to the stock’s more than 3% drop on Monday. Netflix rallied nearly 4% higher.
“I like Disney a great deal,” Cramer said. “I don’t recommend selling it because I expect a vaccine glut by April, but for now home entertainment has edged out the magic kingdom, Netflix.”
Meanwhile, I’m reminded of a favorite Coldplay song from the Garden State soundtrack:
“All in all that I know
There’s nothin’ here to run from…”
Here’s hoping, Jim. Here’s hoping.
Meanwhile, Investopedia explained that despite a downgrade, BMO Capital Markets raised its price target for Walt Disney Company stock from $165 to $180.
BMO Capital Markets analyst Daniel Salmon cited Disney stock’s considerable multiple expansion as a catalyst for the downgrade. However, he added that improved vaccination rates could help Disney continue to be a solid reopening play and that Disney+ subscription forecasts surpassed even the most bullish expectations, leading to the higher price target.
Finally, just keep repeating it: Nothing here to run from…
