Inverse Jim Cramer on Apple stock.Bullish then it is.
Posted: May 02, 2024
- Bernstein upgraded Apple shares to outperform, advising investors to buy while they are cheap - Apple stock had fallen due to fears of weak iPhone 15 sales and revenue in China - Despite China weakness, Bernstein sees potential for a strong iPhone 16 cycle with AI features - Cramer believes Monday's rally in Apple may not last, but open interest ratio for call options is bullish - Even if China sales decline is mentioned, stock could bounce if guidance and earnings are good - Earnings beat and strong guidance expected due to iPad refresh and AI mentions - Stock likely to see a 3-5% increase barring surprises - Bernstein upgraded Apple to outperform from market perform, advising investors to buy while the shares are cheap - Analyst Toni Sacconaghi encouraged investors to "be like Buffett" and follow his strategy of adding to Apple positions when multiples are low and trimming when they are high - Apple stock is currently trading at a low price to earnings ratio and has potential for a 15% upside - Other reasons for the upgrade include a belief that the weakness in China is temporary and the upcoming iPhone 16 cycle could be strong - Historical data shows that buying Apple shares ahead of new iPhone launches has been profitable in the past - Risks to the buy call include U.S.-China relations and disappointing features in the new iPhone
Summarized top reddit comments: - Cheap labor in China contributes to Apple's profit maximization - Apple leads in privacy invasion and data harvesting for AI - Some predict Apple will have horrible earnings and lose 3-5%, but will be bullish for the rest of the year - Apple may be oversold and poised for a pop of up to 5% - When Cramer says sell, others say buy - Apple's stock is already up over 2% before earnings, indicating potentially good results - Apple is in talks with Google about OpenAI, despite potentially losing the AI race - Some are skeptical of Apple's decisions regarding AI and partnerships with Google
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