TV personality and “Mad Money” host Jim Cramer is known for his enthusiastic style and his opinions on the stock market and individual stocks. But the 68-year-old TV personality has made a number of stock market predictions over the years that have turned out to be incorrect or misguided.
In late November 2022, Cramer advised investors to buy Disney stock (NYSE: DIS) at $98 per share, as that price “will be nothing …versus where it goes,” in a tweet.
Fast forward six months, Disney is trading at $92.31 per share, -5.8% on Cramer’s buy price and down more than 27% from its 52-week high of $126.48. A bulk of those declines came this week after Disney’s shares plunged over 8% following its Q2 2023 financial report.
As a result of his inaccurate stock predictions, Cramer has been sharply criticized and mocked on Twitter and other social media platforms. The same goes for his crypto forecasts. Earlier this year, he urged investors to sell their Bitcoin (BTC) holdings. Meanwhile, Bitcoin is up nearly 60% since the start of 2023.
Why is Disney (NYSE: DIS) down?
On May 10, Disney published its financial results for the second quarter of 2023, reporting revenue and profit that matched Wall Street’s estimates, as well as strong growth at its theme parks.
However, the media and entertainment giant reported 157.8 million Disney+ subscribers in the quarter, missing the analysts’ expectations of 163.17 million, according to StreetAccount. The number of subscribers using the streaming platform declined by 2% from 161.8 million as of Dec. 31, while Wall Street was expecting growth of less than 1%.
The company said its streaming losses narrowed as recent price hikes helped offset the subscriber losses.
Disney stock price forecast
Based on the views of 30 analysts at TradingView, DIS is still rated as a ‘strong buy.’ Over the past three months, 22 analysts offered the highest rating for Disney’s stock, 2 view it as a ‘buy,’ while 6 think DIS is a ‘hold.’ No analysts advised selling the stock.
Going forward, Disney is expected to hit $122.96 in 12 months, based on the consensus of 25 analysts’ price forecasts. This implies a potential upside of 33% from the current price.
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Source: https://finbold.com/jim-cramers-disney-bullish-stock-advice-backfires-as-dis-shares-crash/