Why Jim Cramer Just Bought Disney Stock For His Charitable Trust

The Walt Disney Co DIS traded lower this week after the company provided worse-than-expected quarterly global net additions guidance for Disney+.

Jim Cramer bought Disney stock for his charitable trust when the stock sold off amid comments from Disney CEO Bob Chapek, he said Friday on CNBC's "Squawk On The Street."

Speaking at the virtual Goldman Sachs Communacopia Conference, Chapek warned of potential headwinds related to COVID-19.

Chapek shouldn't have used the word "distant" when asked about the potential for buybacks and dividends, Cramer said. 

"That crushed the stock, but that gave us the opportunity to buy," he said.

"I don't think he meant that. I think he meant basically that COVID-19 is a speed bump and frankly they have such growth opportunities that they don't need to do a buyback or dividend but they will when it's right."

Investors who are only focused on Disney+ numbers are really missing the point, Cramer said. Disney cruises are also doing very well, he said: "Disney's back."

See Also: Why BofA Remains A Disney Bull Despite Disappointing Q4 Outlook

Cramer told CNBC that he bought the stock for his charitable trust at $171 per share. 

DIS Price Action: Disney has traded as high as $203.02 and as low as $117.23 over a 52-week period.

The stock was down 0.43% at $175.49 at time of publication.

Photo: Al Seeger from Pixabay.