“Jim Cramer sees more than one way for investors to win in the market right now. However, there is one way to lose and that is with owning technology, or specifically, the FANG house of pain [Facebook, Amazon, Netflix and Google],” Abigail Stevenson reports for CNBC.
“Apple reported earnings on Tuesday, which prompted the stock to fall more than 8 percent in after-hours trading. Cramer considered the numbers to be just OK, with some decent highlights that included an accelerating service revenue stream stronger than expected and some good data on new adoption,” Stevenson reports. “With this in mind, Cramer added that Apple is now suffering from the hangover of strong sales last year, which has now extended to the once-red-hot Asian market.”
“‘In some ways even Apple misjudged how truly strong its cellphone sales were, and it is hitting a reset button. A reset down, as estimates for both phones and earnings are going to come down hard tomorrow,’ Cramer said,” Stevenson reports. “‘I have been saying the outlook will be tough. It was that, and then some,’ he added.”
“Cramer expects the pain from Apple to reverberate through the entire tech cohort on Wednesday, especially the stocks that did not go down when Alphabet reported. This includes Twitter, which provided a downbeat forecast on Tuesday,” Stevenson reports. “‘I want to own Apple for the iPhone 7. Not changing my long-term view,’ Cramer said.”
Read more in the full article here.
MacDailyNews Take: Or, maybe for iPhone 8 in 2017, if some rumors are to be believed.
SEE ALSO:
Jim Cramer: Buy Apple if earnings cause a dip – April 26, 2016Apple investors, watch out for a bear stampede – April 26, 2016
MacDailyNews presents live notes from Apple’s Q216 Conference Call – April 26, 2016
Apple reports earnings miss in Q216 – April 26, 2016
Now we’ll see the men separated from the boys, to quote an old phrase. I don’t think anyone is surprised by these results. Disappointed yes, but not surprised.
Reminds me of the old joke:
Q: How do you separate the men from the boys in Greece?
A: With a crowbar, of course!
Down Boy! 😉
I wish I could quit you
I want to own Apple because the largest company in the world, with hundreds of Billions between the sofa cushions and some of the smartest people in the world must have a maturing skunkworks that would give most of us heart attacks to behold.
Tech stocks and company valuation have generally skewed towards potential instead of actual earnings. Apple continues to be an outlier because 1) it ships tangible real products that people really need, 2) it has the potential to completely disrupt a market to a new model.
It may not be with all of these team members, but apple will be back.
For years prior to the launch of the iPhone 6 / 6 plus, there was story after story after story about how Apple was ‘missing the boat’ versus Samsung’s phablet smartphones.
And then Apple finally releases the 6 / 6+ …. and huge sales result.
We all knew (and said as much) that these sales was pent up demand and vindication of everyone’s observations that Apple needed to compete in the bigger smartphone market.
Well, that pent up demand bubble cycle has burped and passed … and now we are suddenly in a panic and trying to act surprised that we didn’t know all along that it was a sales bubble from pent up demand? Please!
Therefore the stock should go up.
What a farce….. Apple falls 8%. SO WHAT? Its fallen close to 8% when it beat the $h!t out of WallStreet. It falls at every announcement every quarter.
The only thing different is now the naysayers can gloat about being ‘right’ for the last 13 years, that Apple is doomed and goon crash & burn. The rest of their ‘Apple coverage’ will trumpet the same old BS reasons why Apple is failing; iPhones are stagnant, no way they could possibly grow, blah blah blah…..
Nothing new to see here.
I miss the old days when SJ wouldn’t pay a dividend and didn’t give a flying leap about wall street. Apple makes its money from selling great products.
The latest happenings at Apple prove that time and time again. Doing the massive stock buy back, taking debt, and handing out dividends like halloween candy has done NOTHING to get any better treatment from Wallstreet. In light of that, maybe its time to stop the buy-back, discontinue the dividends, and become debt free again.