TV host Jim Cramer from CNBC’s “Mad Money” recently advised investors to maintain a strong foothold in Apple Inc AAPL.
Market Scenarios: Cramer recognizes the challenges faced by Apple in 2024, including stock price dips from cautious analyst remarks, regulatory hurdles, and stagnant iPhone sales in China, as per a report by CNBC. Despite these obstacles, Cramer emphasizes the importance of patience for investors, urging them to hold onto Apple stock instead of trading it.
He underscores Apple’s consistent performance and suggests that even if the stock faces a further decline, he won’t be parting with it. Cramer points to the potential of Apple’s AI-integrated iPhones and the resolution of China-related issues for long-term growth.
Cramer asserts, “Own it, don’t trade it, in part, because it’s only a matter of time before China reignites.”
Bank of America’s Perspective: Contrary to some skepticism, Bank of America remains positive on iPhone sales, noting an increase in the device’s market share in 2023.
Evercore ISI’s View: Evercore ISI advises holding onto Apple stock, citing AI integration, capital allocation, and the underrated Service business as potential catalysts for future stock growth. The analysts highlighted the advantages of running AI on the edge for lower latency, enhanced security, and improved accessibility.
Value Proposition: Developments in the Chinese market have raised concerns among investors, but Cramer and others remain cautious yet resilient about Apple’s short-term outlook. Cramer specifically mentions a significant drop in stock prices as a prelude for any potential rebuild.
Bank of America’s strategist, Savita Subramanian, predicts a forthcoming surge in corporate profits, initiating a “virtuous investment cycle” that could propel S&P 500 earnings per share to new heights.
According to B of A Securities analyst Wamsi Mohan, Apple’s pricing strategy has been instrumental in driving its unit sales and revenue share in the competitive smartphone market over the past 17 years.
Fund manager Gene Munster from Deepwater Asset Management draws parallels between Apple’s current actions and trends in Meta, emphasizing the potential impact of Apple’s AI initiatives on its financial performance.
Insights: Factors like AI integration and strategic pricing have been identified as key drivers for Apple’s future stock performance, signaling a deeper focus on innovation and adaptability in volatile markets.
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