Jim Cramer’s Bullish Case for Disney: A Buy at These Levels?

Jim Cramer, the fiery host of CNBC’s Mad Money, has long been a vocal advocate for Walt Disney (DIS), and despite the stock’s struggles in early 2025, he remains undeterred. “Disney is radically undervalued,” Cramer declared in a March 2025 Morning Meeting livestream, urging investors to “buy more shares on weakness.” With the stock trading near $110—a 13.85% decline from its April 2024 levels—Cramer sees opportunity in the dip. But is Disney’s fundamentals strong enough to justify his optimism? Let’s break it down.

The Case for Disney: Value and Catalysts

Cramer’s bullish stance hinges on two pillars: Disney’s undervalued stock and its diversified revenue streams. Analysts at Redburn Atlantic recently upgraded Disney to “Buy” from “Neutral,” citing a $147 price target—a 34% upside from current levels. This optimism stems from Disney’s streaming progress and its theme parks, which account for 60% of operating income. While Disney+ subscribers dipped slightly, the direct-to-consumer segment turned profitable in Q1 2025, driven by Hulu’s strong performance. CEO Bob Iger also noted that recent price hikes for Disney+ saw less subscriber churn than feared, easing concerns about the streaming model.

The data shows Disney’s decline from $127.99 in April 越2024 to $110.50 in March 2025, but Cramer argues the drop has created a buying opportunity. “The franchise value of Marvel, ESPN, and the parks is worth so much more than this,” he said. Hedge funds agree: 108 of them held Disney shares as of Q4 2024, a testament to institutional confidence.

The Risks: Economic Uncertainty and Streaming Wars

Cramer isn’t blind to the challenges. He warned that Disney’s theme parks could suffer if recession fears materialize, reducing discretionary spending. “A U.S. recession would hit vacations hard,” he noted, adding that foreign tourism declines—a risk if trade tensions with China escalate—could further pressure parks revenue.

Streaming remains another battleground. While Disney’s content renaissance (e.g., Marvel’s box-office hits) is a positive, rivals like Netflix and HBO Max are fiercely competitive. CFO Hugh Johnston’s cautious full-year outlook—due to a “rapidly evolving macro environment”—sparked the recent dip. Cramer dismissed this as prudent, but skeptics argue Disney’s streaming growth may never offset its shrinking linear TV business.

Cramer’s Contradiction: AI vs. Disney

Here’s where Cramer’s advice gets intriguing. While bullish on Disney, he’s even more enthusiastic about AI-driven stocks, which he calls the “greatest investment opportunity of our lifetime.” A unnamed AI stock, trading at under 5x earnings, has surged since early 2025, contrasting with Disney’s stagnation.

The data reveals Disney’s 13.85% drop versus NVIDIA’s 25% decline—a reminder that no stock is immune to market swings. Cramer’s advice? Prioritize high-growth AI picks for short-term gains but hold Disney as a long-term core holding. “You can’t bet against a company with this much franchise power,” he argued.

The Bottom Line: Buy the Dip, but Keep an Eye on Risks

Cramer’s stance is clear: Disney is a buy at $110, given its undervaluation and resilient cash flows. The Redburn $147 price target implies significant upside if streaming profitability improves and parks rebound. However, investors must weigh the risks: a recession could test Disney’s discretionary businesses, while streaming’s uncertain path remains a wild card.

For now, Disney’s dividend yield of 1.3% and its fortress balance sheet (thanks to parks cash flows) offer a safety net. Cramer’s “buy on weakness” mantra is a call to capitalize on fear-driven selling—a strategy that’s worked for Disney historically. As he put it: “This is a diamond in the rough. The longer you hold, the better it gets.”

Final Verdict: Disney (DIS) is a Hold with a bullish bias. The stock’s dip presents a buying opportunity, but investors should pair it with higher-growth AI plays for a balanced portfolio. Stay patient—Cramer’s right that Disney’s value can’t be ignored forever.