“Apple is a schizophrenic stock, TheStreet founder Jim Cramer said Wednesday, and it is best expressed by what Bernstein analyst Toni Sacconaghi said Wednesday,” Tom Terrarosa writes for TheStreet.
“Bernstein on Wednesday gave hope to investors when it placed a $1 trillion target on Apple’s market capitalization based on the idea that it monetizes its services instead of relying on hardware sales, according to Cramer, manager of the Action Alerts PLUS portfolio, which owns AAPL,” Terrarosa writes. “‘But be aware, no one else will come out with a trillion-dollar price target tomorrow,’ Cramer cautioned.”
“Not to mention, the market is still anxiously awaiting word on a potential interest rate hike by the Federal Reserve,” Terrarosa writes. “‘If you have more governors come on and say, ‘Look we have to tighten because we have a hotter economy,’ then Apple won’t matter either,’ he said. ‘You’ll be fighting the Fed. Right now, you’re fighting the Fed if you buy stocks.'”
Read more in the full article here.
MacDailyNews Take: The way the market undervalues Apple, we’ll believe that $1 trillion market cap when we see it.