5. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 184
Cramer discussed insights from JPMorgan and Evercore regarding why investors should consider buying Apple Inc. (NASDAQ:AAPL) stock, arguing that negativity surrounding the company might be overblown ahead of its earnings report.
“Today, two firms, JPMorgan and Evercore, talked about why you need to buy Apple. Both pieces stress that maybe people have gotten too bearish on the stock ahead of the earnings. So we might need to rethink all that negativity and just buy the darn thing. I mean, it’s bizarre that so many people are so eager to hate the stock of one of the greatest companies in history, especially when the stock’s been such a great long-term performer. Quizzical, isn’t it?
Yet this happens whenever they launch a new phone. It feels like almost every day we come in and some analyst lowers their estimates because of tracker work that showed iPhone 16 lead times were short and there’s not much demand, right? I mean blah, blah blah.”
Cramer noted that the analysts from JPMorgan and Evercore are taking a more optimistic stance. He also emphasized the importance of owning the stock for the long term rather than trading it.
“So many analysts have now shaded down their estimates for Apple that, get this, if business is simply okay, the estimates will prove to be too low. So these two bold analysts at JP Morgan [and] Evercore wanted to take the other side of the trade, the positive side. Plus, many of the objections to Apple may not hold as much water as they did even a couple [of] weeks ago. For example, we know a lot of people were worried about Chinese demand, but get this, if the Chinese government’s actually able to stimulate, right, the stimulus plan starts working well, don’t you think that China’s issues are a smaller concern, more money for consumers in China means more orders for the prestigious iPhone.
This is why I always say own it, don’t trade it. The analysts always try to scare you out of Apple based on incomplete data and from a long-term perspective, think about it, they’re always wrong. If you sell Apple in the most recent bout of negativity, you miss a tremendous run over the past week. And then, you did it before that you missed another run, then another and another. No wonder they call this stock the Teflon Don or at least Ben Reitzes over at Melius, a big Apple supporter calls it that, and I like it.”
Apple (NASDAQ:AAPL), known primarily for its iconic iPhone, remains one of the most reputable companies in history and is on the brink of a significant upgrade cycle driven by advancements in artificial intelligence. In September, the company introduced a suite of AI-powered features branded as Apple Intelligence. The new offering aims to advance the functionality of the latest iPhones, iPads, and Macs, providing users with tools that facilitate quick writing and summarizing of texts and emails, photo editing, and the creation of personalized images.
While the new features were not ready for public release at the launch of the iPhone 16 and iPhone 16 Pro last month, anticipation is building for the upcoming iOS 18.1, which is expected to be available on October 28. The latest operating system will integrate Apple Intelligence, further expanding the capabilities of Apple devices and promising to improve the user experience significantly.
