TheStreet’s Action Alerts PLUS Portfolio Manager Jim Cramer said a lot of people think Apple is just a device company but the problem with that is that these devices also lead to a very lucrative service stream. It’s the fastest growing revenue stream and it has really big margins.
Wall Street is convinced this is just a device company. Cramer believes that investors who think this is just a device company, should get out of the stock.
If it were just a one product company the stock would go to $58 or $60. But Cramer totally disagrees and thinks the revenue stream for services is going to be very big.
Watch the video here.
MacDailyNews Take: So are we.
SEE ALSO:
Apple CEO Cook ends stock slide with appearance on CNBC’s ‘Mad Money’ with Jim Cramer – May 3, 2016
[Thanks to MacDailyNews Reader “Chris Renaldi” for the heads up.]
I keep adding AAPL every dividend.
Cramer believes that investors who think this is just a device company, should get out of the stock.
Or maybe these investors should get out of stocks entirely, as they obviously are NOT willing to do their homework about their investments. That’s a great way to play Follow-The-Wolf and get sheared of their investment money.
I have bet against Apple several times, and lost each time. My problem was a lack of patience, I wanted an mp3 player with fm radio, so got a Samsung, later Apple came out with the nano.
Wait for the new stuff…maybe Apple bank. Why not have an internet bank connected to the iphones?
Hugh Massengill Eugene
Cramer’s an idiot.
It takes so little intelligence to make that statement.
Me too. I am certainly not betting on the online paid critics from Samsung and LG. Nor Wall Street that seems hell bent on churning the stock.
I’ve decided to begin winding down my AAPL investment. The lack of updates to the Mac line across the board, software in decline along with less attention to details have convinced me that APPL is changing from core roots. R&D in Auto’s and Virtual Reality should not suspend key activities on key products already in the market place.
I can’t wrap my brain around not updating Mac’s yearly, even if it’s only with modest chip updates. Apple knows Intel’s roadmap, they should be working in lockstep like the rest of industry. There’s also no reason not to give high end computer users a chassis that can be expanded and updated. These folks are power users, early software adopters who need hardware that can morph along with their needs.
SJ bet the farm a couple of times and won big. But, in those cases he delivered products to us of amazement, beauty, worked incredibly well, and fulfilled a need we didn’t recognize we had. All the work and billions spent on auto’s I don’t think will deliver a product like this. Time to move on.