Jim Cramer Latest Stocks: 23 Stocks He Just Talked About

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders In Q3 2024: 158

Apple Inc. (NASDAQ:AAPL) is the most valuable consumer electronics firm in the world and one whose valuation could touch $4 trillion soon. As it generates 51.6% of its revenue from the iPhone, the iconic smartphone lineup is baked into Apple Inc. (NASDAQ:AAPL)’s hypothesis. The stock responds to even the slightest of credible news of the smartphone either facing reduced demand or Apple Inc. (NASDAQ:AAPL) deciding to lower its manufacturing orders to contract manufacturers. The high valuation approaching a $4 trillion market cap and the iPhone’s criticality was also on Cramer’s mind as he started by discussing how Apple Inc. (NASDAQ:AAPL)’s high P/E ratio hasn’t dissuaded buyers:

“And people will not stop buying it. . . .Well David, I mean one of the things that’s happening is is there’s people who just say we’re getting away from the cellphone cycle.

“I say own it don’t trade it. . . it’s so far the biggest position in our trust. But I do think that if we can just get away from the [IPHONE] 17, or the 17 and 18, the 19, get away from that and make this much more of a service story. Now Tim Cook bridles if you say look, it’s Razor, Razor Blade. Because this is a tech company with the highest satisfaction. But I do think that if you could make it so that the service revenue is the thing and you’ve got China, without China orders [inaudible] so Apple’s no longer dependent on just China orders. And you get a higher multiple, but this multiple has to be followed up by a dynamite 2025.

“I mean I was going over my core holdings for tomorrow’s speech, and it’s still a core holding. I don’t know what to say. Would I come in and buy the stock right now? I mean I’d think I’d wait for a bit of a comeback, it’s just been, it trades like uh, Oklo. And it’s Apple. Unbelievably great company. I don’t know what to do. This is a total quandry for me. How do you tell people to buy Apple at that multiple when it doesn’t have that kind of consistency. And you have to believe that what they do have is a plan to be able to, so that they are out of the cycle business.”