Jim Cramer Wanted To Own The Walt Disney Company (NYSE:DIS) But Couldn’t

Jim Cramer, a prominent CNBC television host, expressed his belief in Josh D'Amato, the CEO of The Walt Disney Company (NYSE:DIS), and praised Chris Berman, the ESPN legend. He believed that Disney could achieve significant growth if it doubled its cruise ship business. Cramer also mentioned that Disney's newly established digital platforms were performing well, with streaming revenue increasing by 11% to $5.53 billion during the third quarter.

Furthermore, the Experiences division, which includes cruise operations, saw a 10% jump in revenue to a record $9.97 billion.

Despite these positive developments, Disney's overall revenue for Q2 fell short of analyst estimates. Cramer emphasized that the company's Experiences division, while strong, is not a secular growth driver and could potentially lead to a downturn if Disney becomes too dependent on it. Moreover, the cruise ship business is capital-intensive, which affects cash flows and operating margins.

As a result, Disney's stock has been under pressure due to the overall performance of the media and entertainment industry, with its shares down by 9% over the past year and 3.6% year-to-date.

In terms of investor sentiment, 119 out of the 1,022 funds tracked by Insider Monkey had invested in Disney, a slight increase from the previous quarter. However, some hedge funds, such as Viking Global and Arrowstreet Capital, reduced their positions in the company. The forward P/E ratio of 14.45 for Disney is relatively attractive compared to other stocks in the sector, like Comcast (CMCSA) at 7.73 and Netflix (NFLX) at 25.25.