Jim Cramer Supports Nelson Peltz's Renewed Push for Disney Board Seats

Published 10 hours agoDIS

Jim Cramer Supports Nelson Peltz's Renewed Push for Disney Board Seats

Jim Cramer has voiced support for activist investor Nelson Peltz's renewed effort to secure board seats at the Walt Disney Company. After Peltz ended his proxy fight earlier in February 2023, Disney's stock fell by about 24%, largely due to its struggles in achieving streaming profitability, according to reporting by necn.com. Cramer remarked that Peltz correctly noted the significant stock decline, implying it might be unjustified, and thus supports Peltz's engagement.

Cramer's backing of Peltz's involvement comes amidst his own critique of Disney's current management, particularly targeting CEO Bob Iger. Cramer has expressed disappointment over Disney’s inability to reverse its declining performance. This reflects broader concerns about the company's strategy and execution under its current leadership. The issues are compounded by the underperformance of its streaming services, a challenge that has persisted despite the management's efforts.

Reflecting on his previous stance, Cramer admitted to having misjudged Disney's stock potential. In statements covered by inkl.com, he conceded that his earlier optimism about the company was misguided, acknowledging the ongoing obstacles Disney faces. These admissions highlight a shift in Cramer's perspective as he aligns with Peltz's push for change within Disney's leadership, suggesting potential shifts in strategy could be on the horizon.

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