We recently published 10 Stocks Jim Cramer Discussed As He Warned About Samsung’s Phones. The Walt Disney Company (NYSE:DIS) is one of the stocks Jim Cramer recently discussed.
The Walt Disney Company (NYSE:DIS)’s shares have gained 2.2% year-to-date but have lost 5.5% over the past month. While the firm has benefited from a growth in its subscription business earlier in the year, the shares lost ground after its latest earnings report demonstrated weakness in the linear business. After the report and the share price drop, Cramer criticized the sellers as he emphasized that they were not considering the full picture when it came to The Walt Disney Company (NYSE:DIS). He reiterated the sentiment this time around as well:
“. . that people will look at the NFL deal and realize how terrific that could be for subs and the ESPN package that I think is crucial to the evaluation here. But no one cared at all, it was really amazing. I mean, Hugh Johnston cared, I mean, CFO.”
Here are Cramer’s thoughts about The Walt Disney Company (NYSE:DIS)’s earnings release:
“Yeah I had kind of a jocular call this morning with Hugh Johnston that you just saw. Because were laughing about how the negativity, which is the negativity just so you know . .it’s a ten billion dollar market cap, ten billion market cap loss on 15 million revenue shortfall. . .they beat by 14 cents and they didn’t raise by 14 cents, that’s what happened. They only raised by ten cents, so people freak out. First, the NFL deal isn’t even included. No one’s including that on their numbers, we don’t really know what it can be worth. But second, the kind of analysis that we’re starting to see being done, in the opening moments this stock traded at 115, traded at 119, they’re so silly and shameful that you have to just say, children, behave. You haven’t done any work, how do you make the measure of a quarter?
“. . .There are people, I’ve spent a lot of time in the last 24 hours trying to figure out the value of the NFL deal with some people who actually are very good and know much better than any of the people who are trading it. And, it’s considerably more than what the stock has lost. Matter of fact, the stock was at 122 when the deal was announced. That was probably right, that was probably right. If you’re gonna take down market cap this big on that miss of 50 mill and not include what each NFL game is going to be, to not include the ESPN package that you’re gonna have to pay a lot of money, to not include NFL RedZone, is just to say okay I don’t really want to make money for my partners, bunch of losers. I’ll do whatever the heck I want with the money. By the way, these are not individuals who are trading the stock. It’s not individuals.”
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Disclosure: None. This article is originally published at Insider Monkey.
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