Jim Cramer urges investors to buy Disney stock, prompting critics to joke: ‘Time to short’
Bob Iger’s return as CEO of The Walt Disney Company has Jim Cramer bullish on the Mouse House, but critics of the CNBC investment maven say that’s as good a reason as any to bet that the stock price is going to fall.
“Disney, pay 98 if you can. That will be nothing …versus where it goes,” Cramer tweeted on Sunday night at around the same time that it was learned Disney’s board of directors had pushed out Bob Chapek and replaced him with his predecessor, Iger.
Shares of Disney opened north of $100 at the opening bell on Wall Street on Monday as investors hailed the decision by the company’s board to reinstall Iger at the helm of the media and entertainment behemoth.
As of just past noon time on Monday, Disney stock was trading at $96.68 a share. The stock price soared by some 10% in premarket trading in reaction to the news of Iger’s return.
Cramer’s critics on Monday trolled the CNBC analyst, saying it was time to run for cover.
“Disney is doomed,” tweeted one Twitter user who attached Cramer’s face onto the Deadpool superhero who is part of Marvel Comics’ stable of characters. Marvel is a subsidiary of Disney.
Another Twitter user posted a meme depicting Mickey Mouse with a gun pointed to his head.
“Sigh, puts it is,” tweeted another Cramer troll. In stock trading, a put is a type of option that increases in value as the share price falls.
“Time to short,” quipped another Twitter user.
“Shorting” a stock means to borrow shares that the investor thinks will decrease in value. The investor would then sell the shares on the open market at a lower price and pocket the difference, thus turning a profit by betting against the stock.
Cramer has been a frequent target of criticism on social media for stock tips and investment advice that have missed the target.
Last month, Cramer appeared on the verge of tears when he offered up an emotional on-air apology for touting Meta, Facebook’s parent company which has seen its stock price plummet in the last year.
“I made a mistake here,” Cramer said, his voice halting and trembling as he spoke. “I was wrong.”
Cramer has gained a reputation online as an untrustworthy prognosticator of the stock market as Twitter and Reddit trolls have frequently trended the term “Inverse Cramer” — the idea being that investors should do the opposite of whatever the CNBC personality recommends.
One fund manager, Tuttle Capital Management, has taken the concept further, filing prospectuses for two Cramer-tracking funds — the “Inverse Cramer ETF” and the “Long Cramer,” according to Nasdaq.
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