Jim Cramer: Apple’s ‘got something that could dazzle’

“Apple’s move to buy $14 billion worth of its own stock not only got activist investor Carl Icahn off the company’s back, the measure also signaled confidence in a big new product, CNBC’s Jim Cramer said Tuesday,” Jeff Morganteen reports for CNBC.

“‘This is going to be [Apple CEO] Tim Cook’s chance to show, ‘Look people, you wrote us off as a growth stock. We have growth again,” Cramer said on ‘Squawk Box.’ ‘It’s one of my favorite stocks in the market,'” Morganteen reports. “Cramer said on Tuesday that a company wouldn’t invest $14 billion into itself if it didn’t have a big product lined up.”

Morganteen reports, “‘Isn’t it interesting that Icahn goes away and what does the stock do?’ Cramer said. ‘It led technology yesterday. What does that tell you? That this is a company that was opportunistic and aggressive in buying its stock when it got hit. And you wouldn’t do that. You wouldn’t spend $14 billion unless you’ve got something in the pipe that could dazzle.'”

Read more in the full article here.

MacDailyNews Take: Or, Apple simply figured, ‘Hey, we’ve already got a share repurchase program running at an average rate of $30 billion per year, so we might as well spend half that right now when it’s irrationally down 10% after all-time record earnings.'”

It ain’t rocket science.

Related article:
Apple buys back $14 billion shares in two weeks – February 6, 2014

18 Comments

  1. “‘Isn’t it interesting that Icahn goes away and what does the stock do?’”

    Then again, it was the same thing the stock did when Ichan first started making noise. I guess some shareholders actually owe Ichan something for that…

      1. Correction version:
        {{You meant, Carl Icahn behinds the fluctuation up on Monday low on Friday things?. They probably would. Who knows what these crooks doing behinds closed doors!}}.

  2. Companies are not created to buy back stock that was issued- they are created to grow and drive outstanding shares upward. The whole stock buyback has been a massive waste of billions of dollars better used in other ways.

    If shyster Cramer is for it watch your wallet.
    Dude told a guy on Mad Money to keep his money in Bear Stearns a week before it tanked.

  3. Cramer is a dribbling, 17-brain-cell alive vegetable that’s propped up every day to mouth-off some idiotic Cluster-Fox nonsense made up in the helicopter ride from Ailes house to the Fox building.

    ALL DRIBBLING ON THE CARPET.

  4. Apple is opportunistic at playing Wall Street’s game.
    It’s a genius strategy: go along with the bash game, guide at the low end of Guidance, allow Wall Street to have their hissy fit, then in the heat “Apple hate” talking head pontifications, swoop down and clean up, leaving Wall Street recoiling for their next round of manipulation. Ironically, Wall Street who coined their own “Golden Rule” doesn’t seem to think that it applies to them.

  5. Google stock is easily able to outpace Apple stock without resorting to a whole bunch of wasteful financial tricks. Investors are sinking money into Google like they can already go out and buy autonomous robots from Home Depot. I don’t believe there’s any product in the world Apple can come out with that will impress Wall Street.

    All that money Apple spent on buybacks would have been better off spent on developing a search engine business. Apple’s hardware business appears to have already run out of steam and pegged at negative growth. The company lost all of its value momentum in 2012 and is going nowhere. The tech industry certainly isn’t going to be impressed by anything new Apple has to offer even if consumers like the products. Apple seems to exude zero confidence to investors and I don’t see anything on the horizon that will change that drastically. This is not a prediction but just a gut feeling.

    1. Yeah, stock buybacks ARE a waste. They just increase the percentage of ownership of every stockholder. GOOG would do something productive with that $14B… like buying Motorola. 😀

  6. Cramer IS a buffoon. However, it is silly to disparage him when he is talking up Apple’s stock. People spend all their time talking about AAPL being manipulated analysts and then ridicule someone’s opinion that Apple is a buy.

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