10 Stock Predictions That Jim Cramer Got Right Again

5. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 104

In that episode, a caller admitted selling their shares of The Walt Disney Company (NYSE:DIS) to buy Nvidia. Cramer didn’t criticize the move but defended Disney’s long-term potential, noting that investor Nelson Peltz had also exited the stock. He explained:

“No one’s catching a falling knife by buying Nvidia… Now we do know from my friend Scotty Wapner that Nelson Peltz is cleared out of Disney. I got to tell you, I’m in. I think he cleared out much higher. I have a big meeting tomorrow at 12:00 and I’m going to tell you why I think Disney is not something you should run away from. Not telling you to sell the Nvidia to get into Disney, but I don’t care that Nelson’s out — because I think that at these prices Nelson would probably join me in wanting to be in the situation.”

Good call by Cramer as the stock has recovered since and is now up +10.54%.

The Walt Disney Company (NYSE:DIS) is a diversified entertainment conglomerate with operations in film, television, streaming, theme parks, and consumer products globally.

Cramer remains a believer in Disney. Analyzing the stock’s recent dip on May 15, he said the following:

“Look, these things occur every day around here. Think about what happened to the stock of Disney in the last few months… A month ago, it was at $82…. People were buzzing about how the theme parks are too expensive. The sports entertainment’s too expensive. The movies are either too woke or not woke enough, depending on who you ask. You never heard anyone say, did it got the right amount? Now, one month later, Disney’s at $112 pretty much in a straight line.

The company reported a terrific quarter. Turns out people are willing to pay top dollar for the theme parks. The sports deals are making plenty of money. And I guess the movies, well, let’s say they hit the Goldilocks level, not too much, not too little. Same company, just written off by the pessimists, the ones who gave up on all that excellent expertise and intellectual property, think of the money that they didn’t make.”