“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.
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