Jim Cramer: ‘Apple has a winning formula’ (also smashes Microsoft Zune with bat) [UPDATED]

Apple Computer was discussed in the in-depth session of Jim Cramer’s Mad Money TV program on Thursday, January 4th:

Cramer picked Apple Computer as his No. 2 growth stock of 2007.

Although Apple’s up more than 175% the last two years and more than 50% since July, Cramer believes Apple Computer will move higher because “picking stocks is not like flipping a coin.” There’s no balancing out that occurs, he said. Instead, “winners keep winning and “losers keep losing,” Cramer said.

Cramer considers Apple a winner that has changed the way people listen to music. Not only is it a brand people trust and love, but it is cool, Cramer continued. Moreover, Microsoft’s Zune MP3 player will not be able to push it past Apple, he said.

And now that Apple has set up its operating platform, it should continue to grow with its new iTV and Apple phone products, Cramer said. Because none of the analysts have worked the phone angle into their estimates, Cramer said he expects a “tidal wave” of raised estimates to hit the market soon.

There are always bears and short-sellers, but in Apple’s case “they are wrong and should get buried,” Cramer said.

The bears have been wrong for the last three years by believing Apple’s iPod growth would wear out, and now the company has more growth-drivers than just its iPod, Cramer said. In addition, he believes the options-backdating issue is insignificant and should not affect the stock.

“It has a winning formula, and nothing is going against it.”

Full article “Cramer’s ‘Mad Money’ Recap: Top Three Growth Plays for ’07” via TheStreet.com here.

[Thanks to MacDailyNews Reader “Eaxit” for the heads up.]
The video:

FYI: Cramer’s daily “Lightning Round” video podcasts are available via Apple’s iTunes Store here.

[UPDATE: Jan. 6, 2006, 1:46pm EST: Added YouTube video. Thanks, “wyred guy.”]

Related articles:
JMP Securities reiterates ‘strong buy’ on Apple Computer, raises target price from $84 to $94 – January 04, 2007
Analyst: Reasonable consensus estimates leave Apple ‘room to surprise on the upside’ – January 03, 2007
Soleil reiterates ‘Buy’ on Apple Computer, hikes price target from $90 to $100 – January 03, 2007
S&P upgrades Apple to ‘Strong Buy’ with target price remaining at $110 – January 02, 2007
Morgan Stanley ups Apple Computer price target to $110 – December 13, 2006
Caris & Co. initiates Apple Computer coverage with target price of $100 – December 07, 2006
Prudential raises Apple Computer target price to $87 – December 07, 2006
Am Tech/JSA Research reiterates ‘Buy’ on Apple Computer, raises price target to $99 – December 04, 2006
Needham ups Apple target to $115, forecasts Macs capturing 8.3% worldwide market share by 2016 – November 30, 2006
Jim Cramer: Apple Computer is the ‘buy of the century’ – November 29, 2006
Bear Stearns raises Apple price target to $100 – November 29, 2006
S&P reiterates ‘Buy’ on Apple Computer, raises price target to $110 – November 29, 2006
Apple shares rise to record as Mac, iPod sales surge – November 28, 2006
UBS ups Apple Computer target price to $108 – November 28, 2006
ThinkEquity reiterates ‘buy’ rating, raises Apple price target to $110 – November 27, 2006
Analyst sees strong sales of Apple iPods over three-day kick-off to holiday shopping season – November 26, 2006
Apple Computer shares hit new all-time high for fourth straight day – November 24, 2006
Banc of America raises Apple Computer price target, reiterates ‘buy’ rating – November 24, 2006
Apple shares continue upward surge; hit new all-time highs in morning trading – November 24, 2006
Apple Computer shares crack $90, hit new all-time high for third straight day – November 22, 2006
Apple shares hit another new all-time high – November 21, 2006
Expert: ‘Apple will be a triple-digit stock in a matter of months’ – November 21, 2006
Apple shares hit new all-time high – November 20, 2006


  1. Your reader is quite correct.

    He smashed the Zune quite mercilessly, then proceeded to apply the bat to a beige box PC. Cramer can be very demonstrative in his affections and disaffections.

  2. WOW carn`t believe people still have nothing to do with there lives, smash a zune player… That`s great news. NOT.. Who cares… lets talk about something like all the new apple products that`s coming out soon. MDN that wasn`t news….

  3. R- Life is short, so why would we want to go after zune and all that rubbish. Lets talk about something worth wild… Thats all bud… this is MDN but l fail to see what smashing a zune has got to do with apple? hehehe sorry bud just the way l see it.
    Thanks bud

  4. Retraction: the video podcast is the lightning round – I didn’t see any Zune smashing but Cramer predicts that Adobe is one of the few tech stocks that will soar in ’07. There was some stuff on DivX too.

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