Jim Cramer is not giving up on Apple. Here’s why

Jim Cramer from CNBC said he was still attracted to investors on Friday AppleEven if the stocks are behind the averages.

“If Apple can shake the current cover cover – maybe they’ll be good with President Trump – I can justify paying 35 times for the stock.” He said. “That’s why I’m not ready to give up.”

Cramer, iPhone manufacturer, he said he understood the lack of enthusiasm. President Donald Trump slaps upright tariffs in China, where most Apple production. Trump also said that the company should pay 25% or more tariffs to make smartphones anywhere outside the United States – Apple’s production to India to prevent new arrangements. Some analysts said domestic production would increase an iPhone’s cost at least by 25%, and that a US iPhone can sell for $ 3,500.

Apple’s last world -wide developers conference “did not give anything groundbreaking”, Cramer, especially on artificial intelligence continued. Tech Titan also added “warm” guidance when the earnings were reported last month, and some of the Wall Streets continue to lawsuits for the App Store.

However, despite this uncertainty, Cramer said he was willing to adhere to the company. He said he believed in CEO Tim Cook, and that difficult times for Apple in the past have always proved that there were great purchasing opportunities on the trip. For the last few years, he studied the performance of the stock and said he had walked hard after hitting the bottoms.

Cramer also said that it is important to avoid looking at a large number of price in a space, saying that investors should take into account the growth rate of earnings. Money managers will pay for growth, continued and said Apple is expected to provide an increase of 14% in the current calendar year. By the way, he added, S&P 500 It will grow in 9.4% clip as a whole.

Cramer, “Apple’s stock can not ignore a very cheap point, and recent history says it is about 25 times the earnings … This means about 20 points here.” He said. “I certainly don’t want to see that he’s visiting this level again… But if the stock gets stuck for some reason, you know what happened, let’s get the truck back to $ 180.”

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