Lightning Round: Disney is going higher, says Jim Cramer

Light Rail Crash Course: Lightning Round Summary

Key Concepts:

• Disintermediation of ad firms
• Subscription business model
• Momentum in stock price
• Pipeline companies
• Buy, sell, or hold recommendations

Individual Stock Analysis and Recommendations

• Omicron (Mark in Florida): Jim Cramer expresses concern about Mark Zuckerberg's (Meta) plans to disintermediate ad firms, viewing Zuckerberg as too powerful to bet against. He advises against investing in Omicron despite its seemingly cheap price.
  • Quote: "He's too powerful. I would not go against him."
• Disney (Jim in New York): Jim Cramer advises the caller to hold and even buy more Disney stock. He believes Disney is "finally getting its feet right" under current management (Iger). He emphasizes focusing on where the stock is going, not where it came from.
• Peloton (Jeff in California): While Cramer likes subscription businesses in general, he doesn't see sufficient growth potential in Peloton. He suggests Spotify as a better option for exposure to the subscription business model.
• Walmart (Angelo in Ohio): Cramer believes Walmart is "gaining momentum" while stuck at its current level and predicts it will "burst through" to $110.
• Reddit (Bill): Cramer is bullish on Reddit, noting its recent breakout and positive quarterly performance. He highlights the company's integral role in chatbots and believes it is a "winner." He mentions that Reddit is "up nine today."
• Kinder Morgan (Dan in California): Cramer gives a "buy" recommendation for Kinder Morgan, stating that the company "got it together" and that "anything in the pipeline is working."

General Investment Philosophy

• Focus on Future Potential: Cramer emphasizes the importance of focusing on where a stock is going rather than its past performance or cost basis.
  • Quote: "Remember we don't care where stock came from. We care where it's going to."
• Subscription Business Model: Cramer generally favors subscription businesses but emphasizes the need for growth potential.

Conclusion

The lightning round provides quick buy, sell, or hold recommendations on specific stocks based on Cramer's analysis of their current performance, future potential, and industry trends. He expresses concern about the power of Meta, is optimistic about Disney and Reddit, and sees potential in Walmart and Kinder Morgan. He also highlights the importance of considering growth potential when investing in subscription-based businesses.