Cramer's Morning Take: Disney 2/8/24

Jim Cramer (0:02)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

I've never seen so many stocks go up 7% or more in a day. That was one of the reasons why I wanted to play in the arm holding, because these are incredible. Wynn?

Jeff Marks (0:19)

Yeah, and it's really played out over the last week or so, right? Meta on Friday, GE Healthcare had a big move the other day.

Estee Lauder on Monday, though, it's given a lot back, kind of as we would expect. But yeah, Wynn strong today. Disney, of course, is the stock of the day for us. If you want to just jump into that.

Jim Cramer (0:39)

Can we just talk about the fact that the last time this company had this set of figures and strength, the stock was dramatically higher. That matters greatly to me.

Jeff Marks (0:50)

Oh, there's a lot of cleanup that had to happen in between. So, of course, revenues were flat in the quarter, but it was the costs that really saved them. That's what drove a 23% increase in earnings per share, delivering on that $7.5 billion cost reduction plan, over $500 million in SG&A savings in the quarter.

Jim Cramer (1:08)

But there's also a belief that Macau not only is back, but maybe be ahead of where it was. We have a big Chinese New Year coming.

Jeff Marks (1:16)

Yeah, so that's for when Vegas obviously strong there.

But I want to get to win in a moment. But let's just focus a little bit more on Disney first. Because they're talking double digit margins for DTC. Haven't really heard them talk about where margins will get to after they get to profitability in Q4. Increase the dividend, semi-annual dividend 50%, targeting $3 billion in buybacks.

So they're making a lot of progress. But there's still a lot of moves and decisions that need to be made. Which is why the question is, is this enough to hold off Pelts?

Jim Cramer (1:52)

No, Nelson is going to go full bore.

He believes that one of the reasons why the stock has moved, and that Hugh Johnson talks about, by the way, about this sense of urgency, is frankly because Nelson is in there. And they don't want Nelson on the board. Okay, so the best defense against Nelson Pelts being on the board is to deliver great numbers. Not to trash him. They shouldn't have trashed him. That was a mistake, because that just agitates them more. But what I love about what they did was the dividend. The dividend increase is real. And if they do the 3 billion buyback by year end, that's real. That shows me that there are substantive things that are changing and are better.

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