Jim Cramer Shed Light on These 10 Stocks

2. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Cramer praised Apple Inc. (NASDAQ:AAPL) for its commitment to invest $500 billion in the U.S. over the next four years, calling it a significant contribution to the country’s economy. He dismissed critics who suggested the investment was part of pre-existing plans, stressing that the commitment itself is what matters. Cramer also pointed out that while the company could have directed the funds to India, it chose to invest in the U.S., without receiving any special treatment or immunity for doing so. He added:

“They could be hurt by tariffs tomorrow, seems wrong to me. Maybe that’s why Apple stock got hammered today. It ended up down $6.68 cents or 2.7%. When I searched for any reason, any reason, all I could come up with was one explanation: tariffs. Sure, Apple’s an American company, it’s, it’s gonna make a lot of things here, but it gets a substantial number of its parts from Taiwan. It manufactures a huge amount of its products for cell phones in China.

Because of the president’s somewhat arbitrary nature, it’s very hard to own Apple here now because you do not know if the president is going to attach tariffs to Taiwan, slap more tariffs than the People’s Republic of China… What will that do to Apple’s gross margins? Can it afford margin deterioration when stock trades at 33 times earnings? That’s why the stock went down. These are the musings of someone who actually likes the stock very much, who says, own it, don’t trade it and thinks the company’s sensational.”

Apple (NASDAQ:AAPL) creates and markets a diverse array of consumer electronics, such as smartphones, computers, tablets, wearables, and accessories, in addition to providing subscription-based services.