10 Large Cap Stocks Jim Cramer Can’t Stop Talking About

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Investors: 184

Market Capitalization: 3.38T

Jim Cramer explains that while some experts argue that Apple Inc. (NASDAQ:AAPL)’s stock appears expensive, this perspective overlooks the company’s strong cash flow, which supports its value. Cramer highlights a recent insightful piece by Ben Rice from Melius, which argues that despite the market’s current overbought conditions, investors should hold onto their Apple Inc. (NASDAQ:AAPL) stock.

“Another firm mentioned that Apple’s stock is expensive, which it is—unless you consider the cash flow instead of just the earnings. The piece by the irrepressible Ben Rice from Melius made so much sense that you know you need to hold on tight and not feel compelled to sell your Apple stock when the market gets overbought, as it is now. The tech titans, the hyperscalers, the colossal portion of the market—yes, the mega stocks—they just come back every time you sell. But short-term signals say to sell. To me, that means it’s time to bunker down and accept the unavoidable small losses. These stocks are just too good to let go. Bottom line: Hold on to them.”

In Q3 2024, Apple Inc. (NASDAQ:AAPL) reported record revenues of $85.78 billion, marking a 5% increase from the previous year. This growth was driven primarily by a 14% rise in services revenue, which reached an all-time high of $24.21 billion. Key services like iCloud, Apple Music, and the App Store have become significant contributors to Apple Inc. (NASDAQ:AAPL)’s financial success, demonstrating its ability to perform well even amid economic challenges. Apple Inc. (NASDAQ:AAPL)’s net income also grew nearly 8% year-over-year to $21.45 billion, with earnings per share rising to $1.40, exceeding analysts’ expectations.

Apple Inc. (NASDAQ:AAPL)’s investment in artificial intelligence, especially with the launch of the new Apple Intelligence platform, is set to bolster future growth by enhancing user experiences across its ecosystem. Although iPhone sales experienced a slight decline and sales in Greater China fell by over 6%, Apple Inc. (NASDAQ:AAPL)’s focus on expanding its services and AI capabilities provides a solid growth outlook.