Cramer says Apple rally shows why you should own the stock
CNBC’s Jim Cramer said on Monday: Apple’s The recent rise of around 9.95 points, or about 4%, underscores why investors should own the stock rather than trying to buy or sell it, and why the broader market is following suit.
Apple helped the Dow rise 1.12% points, the S&P 500 1.07% and the Nasdaq 1.37%; This, Cramer noted, was supported by three bullish analyst calls, including Ben Reitzes, a longtime Apple watcher at Melius Research. Apple hit a record high at the end of trading on Monday.
“As long as Apple makes the best products, people will buy them,” Cramer said.
Cramer emphasized that the iPhone 17 series is proof of the technology giant’s unique product cycle. As Cramer argues Apple’s CEO Tim Cook Last month, demand from the lightest version to the heavy-duty model was intense, and features such as advanced selfie technology make Apple devices stand out. Price stability, aided by trade-in values and carrier subsidies, increased Apple’s appeal, while the stylish form factor of the iPhone Air caught the attention of consumers.
Cramer said the rally was predictable, but many investors were distracted by persistent negativity. Critics focused on employee departures to Meta, concerns about Siri, weak China sales and increased upgrades.
Analysts now predict a positive development in China by 2026 and momentum in new devices, including a potential foldable iPhone, next year. Reports from Evercore and Loop Capital highlight that double-digit growth in Apple’s services and the upcoming multi-year phone cycle strengthens the stock’s long-term potential.
Cramer noted the 1.5 billion iPhones currently in use and the excitement around product launches. Cramer also noted Apple’s clout with partners like Alphabet, which reportedly paid more than $20 billion to make Google the default search engine on iPhones, demonstrating how Apple can monetize its ecosystem without a heavy investment.
He suggested Apple would take a similar approach to AI, allowing chatbot developers to pay for iPhone integration and creating significant margins without building its own AI model.
Cramer criticized traders who tried to time Apple rather than hold it. Most sold when sentiment turned negative and re-entered after the stock had already risen, missing most of the rally. Analysts said reporters and short sellers had contributed to that fear but were now forced to raise their estimates in response to Apple’s momentum. Cramer also cited other misunderstood companies like Salesforce and Amazon, showing how negativity on Wall Street peaked as fundamentals improved.
“If you use your common sense,” Cramer said. “If you’ve ever checked phone carrier prices at Costco and asked a salesperson at an Apple store for specs, then you’ve got everything you need to know why you should have one instead of trading in Apple.”
