Following yesterday’s disappointing earnings report, prominent CNBC financial commentator Jim Cramer has soured on Disney CEO Bob Chapek, declaring he “absolutely” should be fired.
What’s Happening:
- This morning on CNBC’s Squawk Box, Jim Cramer discussed Disney’s fourth quarter earnings, starting by saying that Bob Chapek needs to be fired, adding, “That’s pretty cut and dry.”
- Asked why he had such strong feelings about the matter, Cramer (while framing the discussion as if he were discussing an NFL coach on ESPN) stated, “He had a couple of years; the team’s going downhill,” noting that he previously had faith.
- Cramer also called Chapek “delusional” for acting as though the fiscal quarter was strong when analysts feel otherwise.
- $DIS is currently sitting at a 52-week low this morning, trading for around $88 per share as of this writing. The last time the stock was that low was in March 2020.
- Although Disney+ added 12 million subscribers in the quarter (for a new total of 164.2 million), the streaming service’s losses doubled year over year, reaching $1.47 billion for the quarter.
- Disney’s free cash flow also decreased from $2 billion to about $1.1 billion during the fiscal year.
- Chapek received a three-year contract extension in June of this year.
- At the time, Chairman of the Board Susan Arnold stated, “In this important time of growth and transformation, the Board is committed to keeping Disney on the successful path it is on today, and Bob’s leadership is key to achieving that goal. Bob is the right leader at the right time for The Walt Disney Company, and the Board has full confidence in him and his leadership team.”