NEW YORK (TheStreet) -- Shares of Walt Disney (DIS) were higher in mid-morning trading on Friday, despite reporting a 2016 fourth quarter miss on the top and bottom line after Thursday's closing bell. The entertainment company has come under fire recently after Nielsen reported that its ESPN sports cable channel lost 621,000 subscribers in one month.
The stock was down initially after the results came out because the "narrative is not so great," but it made a "U-turn" during the company's Q&A session when CEO Bob Iger said the company has a "more bullish position on the future of ESPN's sub base," noted TheStreet's Jim Cramer on CNBC's "Squawk on the Street" this morning.
"Those were the words. The stock turned around. It was $91 when he said it, $96 when he finished that paragraph. And that was all there was to it," Cramer said.
Investors that were doubting Iger are now going "up against" an ESPN that Iger said will benefit from a deceleration of the migration to smaller bundles, as well as from the opportunity that digital MVPDs (multichannel video programming distributors) provide, Cramer noted.
"I think that there may be other fires to put out, but this ESPN one was extinguished last night in the Q&A," he claimed.
Iger has "credibility" when talking about the ways that ESPN can improve in the future and he's clearly "not sweating it," Cramer pointed out. "He has a lot of stature in the business and if he says he's more bullish, then I'm more bullish."