Jim Cramer says he’s bullish on Disney after Iger’s return as CEO

CNBC's Jim Cramer said Monday that he's sticking by Disney aft the institution welcomed Bob Iger backmost to the main enforcement role.

"Disney's the defining communicative of the day. This is simply a bully illustration of however you tin instrumentality with an iconic institution …  and marque wealth erstwhile they bring successful a amended leader. And that's precisely what I spot happening arsenic Iger takes the helm," helium said.

The institution on Sunday announced Iger's instrumentality arsenic main executive, effectual immediately. The determination reportedly came aft elder leaders wrong the institution complained that erstwhile CEO Bob Chapek was unfit for the job. 

Shares of Disney closed up 6.3% connected Monday.

Cramer called for Chapek's firing earlier this period aft the institution reported wide misses connected fourth-quarter net and revenue, driven partially by increasing losses successful its direct-to-consumer segment. He besides criticized the erstwhile Disney caput for not taking work for his mistakes connected the company's post-earnings league call. 

"It was disgraceful, frankly," helium said.

And portion he's pleased with Iger's return, Cramer reminded investors that there's inactive enactment to bash for the institution to chopped costs and prioritize profitability, peculiarly arsenic it relates to the company's streaming business.

"Iger acceptable lofty goals for profitability for Disney+. It's clip to reset those goals to much realistic levels," helium said, adding: "Iger needs to accidental that profitability is what truly matters here, not subscriber growth."

Disclaimer: Cramer's Charitable Trust owns shares of Disney.