Cramer's Morning Take: Apple 8/7/23

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Jim Cramer (0:33)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I've got to tell you something, Jeff, we've got a very split market. The Dow wants to come back, because I think the Dow basically, full of industrial companies that are doing quite well. The NASDAQ is wavering, and the NASDAQ is Apple.

And I have to tell you, I thought that Apple's quarter was fine. It was an off-cycle quarter.

Everybody dumped on it. It was just incredible how much people hated the stock. And it's not done.

Jeff Marks (1:04)

Right, you pointed out a few things in your Great Sunday column last night. Stock had a huge run-up. It was still up 40% even after Friday's declines.

Some estimates, perhaps, they got a little bit too ahead of themselves. The analysts are always very anxious to raise numbers ahead of a quarter.

Jim Cramer (1:19)

There was a very ill-timed piece that ran that said there would be an upside surprise.

Jeff Marks (1:24)

Yeah.

Jim Cramer (1:25)

And I thought that the piece might be right, but I've got to tell you, and I'm gonna repeat this again and again, you don't trade it. All right, here's why you don't trade it. Let me just tell you why you don't trade it. Okay, so it's right here.

Let's say you sold it here.

Would you buy it back here? Would you buy it back at 16? How about if it stops? How about if it stops at 175? So you sold it here and you buy it there. Nobody's that good.

Jeff Marks (1:50)

Yeah.

Jim Cramer (1:51)

Nobody. And that's one of the reasons I've been saying, own it, don't sell it. Of course, you can go back to five if you'd like to.

Jeff Marks (1:59)

And also, history suggests that Apple outperforms the market in the time from their June quarter, or when they report their quarter ended in June, to the fall iPhone launch. Right. So you got the 15 coming.

Jim Cramer (2:13)

And that's why it's my piece.

Jeff Marks (2:15)

So a good track record there of that outperformance. So I mean, the stock's having a bad day, but...

Jim Cramer (2:19)

Right, well, when it's down in the line, that means there's people who are frantically trying to get out of it, because their fears can be down on Monday. They've been right.

I typically wait three days before I wait if you have a bad quarter. However, I will say this.

The people who are selling, I think a lot of them thought that there would be commentary that was much more positive. And good luck. Now, the Vision Pro is something that a lot of people are worried about. I'm not worried about.

Jeff Marks (2:45)

Yeah, I guess just commentary around the iPhone. But if you look at what Services did, that was really positive.

Jim Cramer (2:50)

I mean, come on.

Jeff Marks (2:51)

Revenue growth accelerating, 8% would have been higher.

Jim Cramer (2:54)

Gross margin, fabulous.

Jeff Marks (2:55)

Right, it's a high margin business. And also you have the installed base, over 2 billion. So those are all...

Jim Cramer (3:01)

2 billion means that you can sell them through everything. Now, I've got to tell you, people would say I was watching Man United this weekend.

Look, I know MLS is not at that level, okay? It's just not. But I do think that what you have to start thinking is, is that they got a good contract and maybe they can do more. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning meetings every day at 10:20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.

SPEAKER_4 (3:41)

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