We recently published a list of Jim Cramer Discussed These 29 Stocks Ahead Of Major AI Event. In this article, we are going to take a look at where The Walt Disney Company (NYSE:DIS) stands against other stocks ahead of major AI event that Jim Cramer discussed.
In his appearance on Squawk on the Street the day CES took place in Las Vegas, Jim Cramer commented on the stock market division that persisted throughout 2024 and is present in 2025 as well. The division has seen technology stocks perform well, while other rate-sensitive sectors such as industrial and materials stocks have languished. Cramer commented on the reasons behind it: “I think that’s because people perceive that the rest of the market is hostage to rates. And that tech is not hostage to anything. So I’m aware of that and I’m just concerned that you have this speech tonight, nine-thirty Jensen Huang, everyone’s, we’re really kind of, whatever he says, is going to move things.”
In fact, this division is so prevalent that some of the biggest asset managers in the world have also been unable to remain immune to it. Mentioning a piece in the Financial Times, Cramer shared that it commented about “private equity and private equity trying to get into the 401(k) business.” He added and mentioned, “Marc Rowan CEO of Apollo says, I jokingly say sometimes we levered the entire retirement [inaudible] to NVIDIA’s performance! So [inaudible] we’ve got the NVIDIAs of the world which everybody likes and on the other hand, there’s these stocks are, they really are hostage to rates and no one wants them!”
However, even though technology stocks have stood the test of high interest rates, they might falter in some circumstances. One of these can be bond yields, and if the thirty-year yield spikes to 5%, then Cramer believes “that will start interfering with this tech rally that seems to be motivated by a lot of analysts coming out and saying this is the time, there’s now reacceleration in tech spend.”
The CNBC host also speculated on what Jensen Huang might end up talking about at CES later in the day. He stated “I think that one of the things that Jensen is going to talk about today are all the new use cases. This is tonight’s CES talk. It wouldn’t surprise me if we start hearing about robots. It wouldn’t surprise me if we didn’t hear a lot about Tesla. Tesla and self-driving cars. Tesla and the neural network that is based on NVIDIA!”
Along with industrial and material stocks, another sector that’s caught Cramer’s attention is banks. Mentioning a recent investment bank note about the sector he believes that “one of the groups that I think we have to focus on, there’s a really interesting, uh, Barclays piece on the banks. Darkest before dawn. Raising the group for the first time since 2019, emphasis here on Citi.”
Cramer also outlined that while technology valuations might appear to be overstretched, this isn’t the case with banks. He shared “This is a group that when you look at it, they’re selling at 11 times 2026 numbers. So the idea that you have this valuation problem in the market, well look at these stocks! There’s no valuation problem with materials. Or with banks.” He added “The valuation problem is with the stuff that keeps getting upgraded, which is enterprise software. So there’s a little duplicitous nature among the top people who work at these firms because they should be saying look, there are two markets. There’s the inexpensive market and we’re warming up to it, and the expensive market, and we don’t know what to do.”
Our Methodology
To make our list of the stocks that Jim Cramer talked about, we listed down all the stocks he mentioned during CNBC’s Squawk on the Street aired on Monday.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
A packed theater of moviegoers watching a blockbuster film produced by the entertainment company.
The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders In Q3 2024: 76
The Walt Disney Company (NYSE:DIS) is a global media and entertainment giant. It owns and operates television channels, production houses, and theme parks. Like other mega-media companies, The Walt Disney Company (NYSE:DIS) struggled in 2024 from stiff competition from the streaming industry. As a result, its efforts to navigate the troubled waters are key to the share price performance. The Walt Disney Company (NYSE:DIS)’s prominent CEO Bob Iger is currently leading the charge, and his efforts appear to be yielding results as the firm’s streaming division turned a profit for the first time in Q3. Cramer’s comments surrounded the firm’s recent deal with Fubo:
“Right well I’m not sure exactly at whether that’s a needle mover for Disney, just for Fubo. But I do think that Bob Iger. . . .but one of the things that’s certain is that this stock has done absolutely nothing lately. Even as I think the situation has been improving, and improving, and improving. Movies have been terrific. The cruise not. . . .yet, but will be. I think the theme parks starting to do well. I think Iger would tell you that linear’s no longer hurting the situation.
“I think that Disney is a kind of undiscovered gem because of the way Iger’s positioned it. Hugh Johnston, the CFO has had a handle on it. I think that it’s a very rationalized company.
“I think the parks are going to come back in part because I think that Universal’s gonna open a. . . and I think a lot of people are holding back to be able to catch both. Jessica Reif Cohen had an interesting piece talking about how maybe theme parks will not be asterisks anymore when it comes to Comcast. I think that Orlando is going to have a resurgence but you want to wait for that new park. Why would you go down there ahead of that? I think that’s on people’s minds.”
Overall, DIS ranks 8th on our list of stocks ahead of major AI event that Jim Cramer discussed. While we acknowledge the potential of DIS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DIS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
