"Surprising Decline in Disney Stocks: What Should Investors Do?"

Walt Disney Company (NYSE:DIS) is highlighted as one of the stocks discussed in Jim Cramer's latest program. On the day of the broadcast, Walt Disney Company announced its fourth-quarter earnings report for the fiscal year. The company's revenue was reported as $22.46 billion, while analyst estimates were at $22.75 billion. However, the adjusted earnings per share came in at $1.11, surpassing the analyst forecast of $1.05. By the end of the day, the stock value showed a decline of %7.

Jim Cramer evaluated the stock's drop in the morning program, stating: "The earnings and stock price movements represent an overreaction. They gave you a dividend increase; there’s a buyback in place; this is an excessive reaction... If they can reclaim their current levels, I think it will change people's perception. They should accelerate the stock buyback; that would be great. This is a buyback like DuPont's. The issue, however, is that Disney hasn't yet delivered on the expected things. This significant drop in Disney is truly shocking, $10 down. I was unhappy looking back at everything, but the $10 drop was an insecure excessive reaction. The company is generating significant cash flow, is doing a large buyback, and is paying a larger dividend. Clearly, this is an excessive situation."

Cramer also shed light on the cause of the drop: "The pricing environment for broadcasters hasn't been favorable for subscription increases in recent weeks; I acknowledge that. However, this is a developmental process. Perhaps people thought this process was over."

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