Jim Cramer’s Bold Predictions About These 15 Tech Stocks

5. Apple Inc. (NASDAQ:AAPL) 

Number of Hedge Fund Holders In Q3 2024: 158

Date of Cramer’s Comments: 10-14-24

Cramer spent a good part of his show in October criticizing Apple Inc. (NASDAQ:AAPL)’s bears. Since it derives 51% of its revenue, the firm’s hypothesis is tied to the iconic smartphone. This means that any perceived weakness in iPhone sales tends to drive the stock price. Here’s what was on Cramer’s mind:

“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.

“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.”

Since then, Apple Inc. (NASDAQ:AAPL)’s shares have gained 7.28% after tumbling by 4% in October. Some of this fall was based on, surprise surprise, a report by well-known analyst Ming-chi Kuo sharing that the firm had cut its iPhone orders. As for the recent share price rise, Wedbush’s Apple Inc. (NASDAQ:AAPL) permabull Dan Ives believes that Wall Street is starting to think that the iPhone 16 is the start of a supercycle and that the firm’s Chinese woes might soon be over.