We recently published a list of Jim Cramer’s Top 10 Stock Picks for June. Since Walt Disney Co (NYSE:DIS) ranks higher in the list, the stock deserves a deeper look. But first, let’s see what Cramer was talking about during his programs earlier this week.
Jim Cramer in a latest program lamented over Salesforce’s latest declines following the company’s weak Q1 results and guidance cut. Cramer said he’s been “championing” Salesforce ever since the company went public since he’s used the Cloud software company’s product when he started Street.com. Cramer said Salesforce has been one of the most “distinguished” members of the enterprise software industry. Cramer identified competition as one of the biggest threats to Salesforce, since he believes every other “young person” coming out of the school majoring in computer science knows if you want to make money you should make or sell software for the enterprise world.
The generative artificial intelligence revolution is jolting the SaaS world to its core, according to Cramer, as companies begin to explore the power of AI and question whether they should keep paying for SaaS subscriptions or hire more people when AI-based tools can do similar jobs in a more efficient way.
Methodology
For this article we watched several latest programs of Jim Cramer aired over the past two weeks and picked 10 stocks he’s recommending investors to buy. With each stock we have mentioned the number of hedge fund investors having stakes in the company. Why are we interested in the stocks that hedge funds pile into? 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).
Walt Disney Co (NYSE:DIS)
Number of Hedge Fund Investors: 92
In a latest program on CNBC, Jim Cramer said that while Nelson Peltz has “cleared out of” Walt Disney Co (NYSE:DIS), “I am in.” Cramer thinks Disney is “not something you should run away from.” Cramer said that he doesn’t “care” if Nelson is out.
“At these prices Nelson would probably join me in wanting to be in the situation.”
Nelson Peltz recently liquidated his entire stake in Walt Disney Co (NYSE:DIS) after losing a proxy battle at Walt Disney Co (NYSE:DIS). Media reports suggest that he netted a whopping $1 billion in return on the sale, as he sold the stake at around $120 a share.
As of the end of the first quarter of 2024, 92 hedge funds reported owning stakes in Walt Disney Co (NYSE:DIS), including Nelson Peltz’s Trian Partners. Trian’s stake in Walt Disney Co (NYSE:DIS) was worth around $4 billion.
Walt Disney Co (NYSE:DIS) CEO Bob Iger recently revealed at a conference that Walt Disney Co (NYSE:DIS) would cut marketing costs and increase spending on streaming. Iger also said Walt Disney Co (NYSE:DIS) would increase spending on linear television content.
Walt Disney Co (NYSE:DIS) ranks 3rd in Insider Monkey’s list of Jim Cramer’s 10 Stock Picks Heading Into June.
If you are looking for an AI stock that is as promising as Microsoft 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.
