"I read through that downgrade multiple times. It reads horribly, except for the fact that [the analyst] is not negative on the earnings," Cramer said on "Squawk on the Street."
"This is really what's wrong with the market. We want to pay less for even the highest-quality companies," Cramer added. "Be aware that we can bounce, but it's all about bouncing and staying in a range where the stair step is going down this time, not up."
Earlier Thursday, Sanford C. Bernstein downgraded the media giant's stock to "market perform" from "outperform," citing the lack of a new framework within the media sector as a source of risk.
"We believe a whole new framework is necessary to meaningfully address that question. Where the stocks/sector have traded historically is irrelevant. The world has changed too much," Bernstein said in a note. "We have come to believe the affiliate fee revenue stream deserves a higher risk premium than it did before."
Disney shares were down more than 4 percent Thursday morning.
Disclosure: Cramer's charitable trust did not own DIS shares when this article was published.