Walt Disney Co (NYSE: DIS) on Tuesday joined the streaming video space with the launch of Disney+ and exceeded expectations of CNBC's Jim Cramer, who counts himself among the company's biggest bulls.
It was a historic day for Disney but also a testament to CEO Bob Iger's leadership, Cramer said on "Mad Money." Iger offered a vision years ago on how it can leverage its amazing brands and those who believed in him "made out like bandits."
Disney's stock gained 7% Wednesday after the company said it signed up 10 million people to its streaming video service on day one. This figure is double what Cramer said he was expecting.
Why It's Important
Investors putting their complete trust in Iger should consider taking a step back because "things do go wrong," Cramer said. Instead, a healthy dose of "skepticism and belief" in Iger is required.
After all, Iger's track record isn't flawless as the business has shown challenges in its theme parks, while the company's sports streaming business ESPN+ gained just 2.4 million users in its first year.
"You should never be on autopilot," Cramer said.
Disney expects to increase its 10 million subscriber base by as little as six times and up to nine times by 2024. The case for further upside in Disney's stock can still be made even after Wednesday's "phenomenal run," Cramer said.
Disney's stock traded around $149.57 per share. The stock is up about 37.5% in the -year-to-date period.
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