“Apple finally reported earnings on Tuesday, and Jim Cramer heard only one question about the stock — how the heck should it be valued?” Abigail Stevenson reports for CNBC. “‘That is the conundrum facing Apple, the greatest wealth creator of our generation,’ the Mad Money host said.

“This is the same question that analysts are faced with four times a year when they are required to peer into the future and derive from the company’s quarterly earnings report to provide investors advice on what the stock is really worth,” Stevenson reports. “‘And for my money, I think they are all blowing it,'” Cramer said.”

“Cramer considers all of these analysts to be traditionalists, and they are all looking at Apple as if it were the same as an IBM that peaked on mainframes. ‘I am a generalist, not a technology analyst, and I can’t view Apple just like another hardware company,’ Cramer said,” Stevenson reports. “Ultimately, Cramer thinks the brand loyalty for Apple is so great customers won’t switch to another company. So maybe Apple doesn’t need to worry about peaking phone sales. Maybe it just needs to keep selling more devices, and let the service stream do the talking. ‘By this time next year, it wouldn’t shock me if that service revenue number becomes the key metric, especially with the iPhone 7 right around the corner,’ Cramer said.”

Read more in the full article here.

MacDailyNews Take: Currently Apple’s fiscal year services revenue ($16.8 billion) is just about equal to the entire value of HP Inc.

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