CNBC’s Jim Cramer says Apple’s stock will continue to struggle until one of two things happen: iPhone sales pickup or growth in Apple’s services business are what can set the stock back on its course.
As long as iPhones make up more than 60 percent of Apple’s sales, Wall Street will only care about the razors, not the razor blades.
That’s wrong. But, that’s why I expect Apple’s stock will stay mired at this level either until the phone biz picks up again or the services business grows to the point where it can no longer be ignored.
You won’t be paying 153 bucks for this stock when that happens, you’ll be paying well in excess of these levels when the services revenues finally cross over to be the main thing we talk about when we talk about Apple. — Jim Cramer
Direct link to video here.
MacDailyNews Note: Apple’s Services generated over $10.8 billion in revenue during the holiday 2018 quarter (fiscal Q119). Apple expects to report total revenue for the quarter of “approximately $84 billion.”