Jim Cramerhost of CNBC’s “Mad Money,” urged investors to remain patient in the face of recent challenges faced by the Apple company AAPL.
What happened: Cramer acknowledged the difficulties Apple faced in 2024, including a decline in stock prices due to cautious analyst comments, regulatory hurdles and slow iPhone sales in China, CNBC reported. Despite these problems, Cramer advised investors to have “patience, patience, patience,” to hold onto their Apple shares and not trade them.
He emphasized that Apple is a top-performing company and also suggested that the stock could fall further without him selling. Cramer also said the company’s AI-enabled iPhones and resolution of China-related concerns could lead to long-term gains.
“I continue to believe that as long as China has a veil over it… we won’t be able to make much progress,” Jim said.
“Own it, don’t trade it, in part, because it’s only a matter of time before China reignites.”
Bank of Americaon the contrary, he is optimistic about iPhone sales, pointing out that the flagship device’s share of the smartphone market has increased in 2023.
Evercore ISI he also gave reasons to hold Apple stock, citing AI integration, capital allocation and the undervalued services business as potential drivers for future stock growth. “As AI-enabled tools become more widespread, we believe there will be a strong value proposition for running AI at the edge (inference). The benefit of doing it at the edge (iPhone) would be a lower latency, better security, and easier/cheaper accessibility,” the analysts write.
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Because matter: Recent turmoil in Apple’s China market has made investors, including Cramer, skeptical about the tech giant’s near-term prospects. Cramer expressed hesitation regarding the current situation and indicated the need for stock prices to drop significantly before considering a rebuild of the position.
However, the stock market is on the verge of a “virtuous investment cycle” that could drive corporate profits to new heights, according to a recent note from Bank of America strategist Savita Subramanian. This increase in spending is expected to boost earnings per share of the S&P 500 Index.
According to a recent note from B of A Securities analyst Wamsi Mohan.
Managing Partner of Deepwater Asset Management Gene Munster he thinks it while Tim CookThe first time he mentioned AI at Apple’s shareholder meeting in January failed to excite investors, he thinks Apple’s stock performance in 2024 reminds him of that Marco Zuckerberg‘S Half. He also believes Apple’s AI play can move the earnings needle for Cupertino by double-digit percentages.
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