We’re trimming this stock and downgrading it in a portfolio move ahead of earnings
Shortly after the opening bell we will be selling 150 shares of Disney at approximately $115. After Wednesday’s trading, Jim Cramer’s Charitable Trust will own 750 shares, with its weighting falling from about 2.7% to about 2.2%. We’re shedding some Disney shares ahead of its earnings report before the opening bell on Thursday. We also lower our rating to 2. We’re not making any judgments about upcoming results, but we’d like to have more leeway in the position in case the stock moves lower when the numbers are released. In their preliminary reviews of the quarter, many analysts wrote positively about Disney ahead of earnings, despite the noise about DTC cancellations resulting from the temporary suspension of “Jimmy Kimmel Live!” From experience, there’s a lot of buzz about a struggling consumer, but the price of a Disney vacation has never been this expensive. Finally, we prefer to err on the side of caution as management will provide guidance for fiscal 2026. We expect some caution because they will want to give a prediction that they know they will beat. From this sale, we will realize a loss of approximately 22% on shares purchased in February 2022. (Jim Cramer’s Charitable Trust is long DIS. See here for a full list of stocks.) When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
