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Jim Cramer Says He'd Buy The Dip If Disney Stock Goes To This Level
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Jim Cramer Says He'd Buy The Dip If Disney Stock Goes To This Level
Oct 17, 2024 2:28 PM

“Mad Money” host Jim Cramer has expressed interest in acquiring more shares of the Walt Disney Co. ( DIS ) if the stock price falls below $90. Cramer made this statement during the Investing Club’s October Monthly Meeting, where Cramer emphasized the strategic advantage of buying during market downturns.

What Happened: Cramer wants to “buy more" of Disney ( DIS ), should the stock dip below the $90 mark, CNBC reported on Thursday. Despite a slowdown in Disney’s theme parks, which are a major profit source, the stock saw a nearly 3% rise on Wednesday, closing around $96.

Piper Sandler highlighted that Disney’s experiences unit, including theme parks, now contributes about 40% to the company’s segment operating income, a significant drop from previous years.

Disney’s latest quarterly report, released on Aug. 7, indicated weakness in domestic parks in Florida and California, attributed to inflation-conscious consumers. The company expects stable attendance in the coming quarters. Cramer advised that Disney ( DIS ) should prioritize its theme parks for growth rather than focusing solely on movies and television.

See Also: ASML Earnings Leak Sparks Broad Semiconductor Sell-Off, Sector Down Sharply As Dutch Chipmaker Lowers 2025 Outlook

The company has pledged a $60 billion investment over the next decade in its experiences businesses, including cruises. However, KeyBanc Capital Markets noted a 6% year-over-year decline in total park attendance for September, with a 12% month-over-month drop. Cramer remains optimistic, suggesting that potential Federal Reserve interest rate cuts could benefit consumer-focused companies like Disney ( DIS ).

Why It Matters: Disney’s theme parks have faced challenges recently, compounded by natural disasters. Hurricane Milton threatened closures at Walt Disney World in Orlando, impacting potential revenue. The park restricted reservations, preparing for possible shutdowns due to the storm.

To enhance visitor experience, Disney ( DIS ) is launching the Lightning Lane Premier Pass, allowing guests to bypass queues at U.S. theme parks. Available from Oct. 23 at Disneyland and Oct. 30 at Disney World, the pass offers flexibility but requires separate admission tickets. This initiative aims to attract more visitors amid fluctuating attendance figures.

Price Action: Disney ( DIS ) closed at $96.75 on Wednesday while it was trading 0.021% higher on Thursday in the pre-market at the time of writing, according to Benzinga Pro.

Read Next:

Man Who Accidentally Threw Hard Drive Containing 8,000 Bitcoins Worth Half A Billion Dollars In Landfill Sues Local City Council For Not Excavating The Site

Image via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

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