Jim Cramer: Apple is clearly a buy, despite analyst trash-talk

“Shares of Apple were underperforming the broader index yesterday after analysts at Credit Suisse lowered their 2016 iPhone sales estimates by 8 million units, to 214 million, and lowered earnings per share estimates by 4% — citing weakness in the supply chain,” Jim Cramer and Jack Mohr write for The Street.

“While we do not disagree that near-term iPhone sales appear set to hit a temporary bump, we expect this to be a hiccup rather than a long-term downtrend, and thus view the recent 5% pullback in shares as a potentially intriguing buying opportunity (we are currently restricted from trading shares),” Cramer and Mohr write. “There are plenty of long-term growth opportunities to support the story moving through and beyond 2016, but we think the start to next year could be softer than many analysts — ourselves included — had previously anticipated. We are not concerned in the least, however, and in hindsight, we aren’t particularly alarmed considering how outsized the iPhone 6 upgrade cycle was a year ago. We think that subscribers should take consolation in the fact that the near-term downdraft will likely be temporary (driven by a lapping of iPhone upgrade-cycle peak and near-term inventory builds), and not driven by competitive displacement.

“All in all, we view recent supply-chain concerns as exaggerated, and advise subscribers to take the headline noise with a grain of salt, as the company’s fundamental growth story remains intact, long term),” Cramer and Mohr write. “Given Apple’s enduring ability to draw in consumers and engender unparalleled brand loyalty, we do not expect a sudden reversal of demand for their products.”

Read more in the full article here.

MacDailyNews Take: Yup.

RBC cuts Apple price target to $140, citing iPhone supply chain concerns – December 17, 2015
Piper Jaffray: Individual component suppliers are not indicative of the health of Apple’s overall iPhone business – December 16, 2015
Apple stock slumps on Dialog Semi warning – December 15, 2015

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]


  1. Analysts are worried over fiscal Q1 and Q2 iPhone sales.

    Yet, most analysts are keeping positive ratings and high price targets.

    If you believe in the long-term story, price weakness provides an opportunity.

  2. that noise he is referring to is the collective whine of a generation of MS worshipping dummies who can’t admit they were wrong all along, and that their god was a false god.

    Whaaaa!!! Whaaaa!!!!

  3. It’s hard to reason why any investor looking at Apple over the past year would want any part of the company. In terms of share value it pretty much sucks when compared to any of its tech rivals. When all the other tech stocks are going up, Apple is going down. Who wants to look at that crap. I’m sure investors like to feel like they’re winners not like they’re losers. Taking a look at Apple’s pitiful stock is enough to ruin anyone’s day. I would think most investors would at least wait for some upward trend rather than a downward death spiral. On top of that, being constantly bombarded by bad news (trash talk) surely doesn’t encourage anyone to buy Apple.

  4. The ‘Apple Is Doomed’ meme is officially ancient.

    Here is Apple Death Knell #70, as curated by MacObserver, dated Nov 9th, 2015:

    Apple Death Knell #70 – Apple’s In Big Trouble and Has No Plan B

    Apple is doing really well. The company is fantabulously successful, or so Bryan Clark argued at TheNextWeb. But all that success is only masking the reality that Apple is in a heap of trouble with no future. Again, or so Bryan Clark said. . . .

    It’s hilarious. All the ‘Death Knells’ are hilarious, as they’re consistently wrong. Apple flies far above the heads of the vast majority of analcysts and Apple Bear Bullshitters. They spew-the-view of bottom feeders. It’s both entertainment and a pathetic comment about technology illiteracy.

    Apple Death Knell Counter

    (0_o) (o_0) 😳 🐂💩

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