Cramer's Morning Take: Apple 8/27/24

Jim Cramer (0:02)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club Morning Meeting. We have a very interesting day developing. Yields have gone up a little bit. What people are doing is that when you have yields up, that makes it so that the companies that you may have been buying, Kimberly Clark, with a higher dividend, become less attractive.

And the money is actually going to flow back because it's so fungible, maybe into some tech, or at least the tech selling will be the bet. And the reason why I mention this is because if you watch the stock of Apple, it's telling the tale.

Jeff Marks (0:38)

Yeah, and especially because there were some negative news around Apple late yesterday. The long time CFO, Luca Maestri, stepping down. Morgan Stanley points out during his tenure, EPS, 8% growth, 15% growth, compounded since he took over as CFO. So these are just extraordinary numbers, help grow the services business from less than 20 billion annually in fiscal year 14 to 93.5 billion.

Jim Cramer (1:08)

Handled the buyback and handled it very effectively. If there was stock for sale, a mountain of stock for sale, he came in and bid most of these CFOs to say every day I want to buy 100,000 shares. That's stupid. He never played that. That's a game, which that means that you just don't want to even think about it. He thought about stock prices.

Jeff Marks (1:27)

And he's staying with the company, I think.

Jim Cramer (1:28)

Yes, he is. But the CFO has officially changed.

Jeff Marks (1:30)

Sure. But a deep bench, I'd argue, at Apple. I mean, they attract some of the best talent in the world. So I would think they're in good hands. I'm going to reference Morgan Stanley again. They said they've been impressed with the incoming CFO in some of their limited interactions. Maybe a little bit of a surprise at the stocks higher right now.

Jim Cramer (1:52)

Well, I mean, right here, when they reported the quarter, what he said was, It was a good quarter. Look, we're going to buy a little more aggressively. People didn't see that initially. I don't know why they didn't.

Jeff Marks (2:03)

And then you also have the anticipation, September 9 That's the new iPhone announcement day.

Jim Cramer (2:09)

That is, historically, what people do is, once they see it, then a whole nother round of programs are written for it. Now, I don't know if you've been aware of the battery life issue. But we need to see how much battery life there is. Because there are a lot of people who will trade up if they just can have a battery that lasts for a day.

Jeff Marks (2:30)

Well, I think, too, it's also going to be about Apple intelligence. When is it going to be available in the new software? There were some signs that maybe it might be like in early 2025, but the new phones and also some of the higher end prior models of the 15, they will have the capability to run their AI software.

Jim Cramer (2:49)

Look, I think that this is, Apple should have been down today. Luca is a serious player. I thought the stock will be nicked for a buck and a half. I came in, it was down a buck and three quarters. This move up is again signifying either the interest rates are going to stabilize right here because, remember, interest rates can't go higher without everything being hurt or the money, the flow back, the flow back after what happened yesterday. Start your day with my outlook on the daily market every morning at 10:20 AM. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

SPEAKER_3 (3:29)

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