Jim Cramer: ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore’

“If ever there was a stock that confounded investors, it’s Apple. With earnings beating estimates but revenue falling slightly short, Jim Cramer reveals what every investor must know,” Lee Brodie reports for CNBC. “The results and the subsequent price action [down $53.79 (10.46%) to $460.22] seem to confirm what Cramer has suspected for quite some time. ‘Without Steve Jobs, Apple is just another stock, it’s not magical anymore,’ said Cramer. ‘But that’s okay,’ he added. ‘Just because it isn’t magical doesn’t mean it’s automatically a loser, especially considering how cheap the stock has become after this shellacking.'”

Brodie reports, “However that’s not to say Cramer thinks the Apple stock is a buy – he doesn’t. He simply said, ‘It’s time to accept the fact that Apple’s a decent stock the way IBM is or Johnson & Johnson is.’ No more and no less. ‘One thing’s for certain,’ Cramer added. ‘”Neither you nor anyone else wants to hear that Apple is fine, that it’s inexpensive even after this quarter. That it has huge flexibility with nearly $40 billion in cash – and that things will work out fine. This stock is way too emotional and even though that’s exactly how I feel, the coliseum wants red meat.'”

Brodie reports, “All told, there are plenty of reasons to sell. But – the stock is relatively cheap and that’s a good reason to buy. As a result Cramer added that perhaps the best thing an investor can do is just forget about Apple, all together. ‘It’s become the equivalent of an eclipse that you can’t stop looking at,’ he said. ‘Before long your retina’s burned out and you can’t see anything that’s actually worth seeing.'”

Read more, including Cramer’s reasons why the selling pressure may endure, in the full article here.

Related articles:
After posting new all-time record revenue, Apple shares collapse in after-hours trading – January 23, 2013
MacDailyNews presents live notes from Apple’s Q113 Conference Call – January 23, 2013
Apple reports record results: $54.5 billion revenue, $13.1 billion profit, $13.81 EPS – January 23, 2013


  1. That is a true enough statement in and of itself. Steve generated excitement during product launches and the possibility of ‘one more thing’ around the corner.

    Without Steve, product launches have become mundane. They’re still professionally presented, in fact better than any other company’s product launches, but the fizz seems to have gone, and this seems to be reflected in the stock price.

    I’m looking towards $450 before loading up.

    1. Companies and stocks are about a good story. Steve Jobs told AAPL’s story very well and helped investors believe in the company. This ‘other guy’ running Apple now is very good at running the company perhaps but he fails to tell the story in a convincing way. Tim Cook could have done very well at selling sugar water.

    2. Not true. “… nearly $40 billion in cash …” is about $100,000,000,000 short! If Cramer doesn’t know that Apple has about $140 billion in the bank then he doesn’t understand AAPL or the Apple company.

    3. Everyone here seems to forget that this is stock speculation not investing. Speculation looks for a quick buck. PERIOD.

      Investors are looking for a solid company that grows.

      Speculators will buy a stock, take the dividend, and sell the stock on the next uptick. There is no concern on how well the company is doing. STRONGLY STRESSED Amazon is a great stock for the speculator. No matter that its PE is 2000 and its losing money. People make money selling and buying its stock. Speculating. When it crashes and investors lose everything, speculators will walk away having sold on the crash.

      The stock market today is NOT ABOUT INVESTING. Its about speculating on how big and fast the bubble will grow and how quickly it will pop. PERIOD.

      Just a thought.

  2. Apple has not changed, the idiots who call themselves Anal-ists have gone off the deep end. They buy crap like google and sell off Apple who makes twice as much profits and better products.

    1. The problem is apple makes the profits not the brokers.
      The way they make money is on commissions and getting clients to sell after they have pumped up the stock.
      The fact is that this game is not about performance it is about the perception that a stock will grow.

  3. Cramer is an entertainer. Nothing more or less. He has a tv show. A show needs viewers. Viewers tune in for entertainment. Cramer does his best to deliver.

    Anyone who takes anything this man says seriously deserves it.

  4. Cramer is right. Steve Jobs was the face of Apple and using an Apple device meant Steve Jobs and all his sincere excitement was right in there.

    In my opinion, Apple needs to be creating new exciting things for the excitement to follow and I hope in time, it will deliver. Cook isn’t the best presenter either. I think he should have Jony do the presentations.

    Apple is still the hottest tech company and still blows the doors off anyone else out there but Apple has 2 problems:

    1. Too many copy cats (thank u samsung) diluting the uniqueness and allure of an Apple device and,
    2. Needs to invent something different yet again to stay on top.

    1. Definitely. At most, Tim should MC, at the VERY most. I wouldn’t mind if he was not even on the stage. In fact, watching him is frankly painful. And that is OK. Everyone can’t do everything and it is this part that worries me about Apple. We shouldn’t have to be talking about this. Tim et al should have recognized and welcomed his not doing the presentations as a gentle way to move out from under Steve’s shadow by publicly acknowledging that he is not Steve and will not try to be Steve. By so doing he would have gently taken control of the ship without anyone even noticing. That is, the decision to not present would have been viewed as a compliment to Steve and as an act of omission or deference out of respect on Tim’s part. In fact, it would have been his first important act of commission as he subtly began to steer the ship on his own. They missed a huge opportunity and will never get that second chance to make that good first impression. Sadly, this has since been a trend in that they continue to miss those first good impressions and I won’t bore you further with listing the specifics that we all know to well.

    1. I’m completing your thoughts…

      There was definitely… something wrong with my reasoning. Wall Street has no interest in earnings, profits or reserve cash. Only quarter to quarter or year to year increases. It’s all about market share and future growth of which Apple has very little. I’ll wake up tomorrow morning and Apple will have a P/E of about 10.7. Yes, the magic is gone and so is my money.


  5. In light of the recent developments, I just sent this email to my daughter:

    We both know that most of your inheritance is in Apple stock. And, in light of the drastic drop in the price in after hours trading, I have only one question: What the hell were you thinking?

    1. If you bought at $800, I feel for you. (Well, not really as you should only bet the amount you can afford to lose) If you bought years ago at $20 or so, we’ll the stock has doubled a few times since then to the point that Apple would have to go down to below $10 a share for your money to show no appreciation at all.

      At $450, you’re likely still well into the “profit” column.

      1. Growth of apple profit in every aspect except stock. Stock growth is not a measure of company success. There are 54 billion signs of evidence that apple has unheard of growth. Tell me one company who has grown to this size.

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