Yesterday, the well-known American television host Jim Cramer gave clear advice on Apple stocks.
He did it during his usual Tuesday television show Mad Money.
Apple shares on the bull
The price of Apple shares (APPL) on the stock market reached its all-time high last month at $237.
By now, since June, the price has remained almost constantly above $200, and since mid-August, it has not fallen below $210.
However, the first peak above $230 was already made in July, and since then it has been moving sideways within a range between $210 and $230 with brief excursions above and below.
It should be remembered that the peak of 2021 was just above $180, and that during the bear-market of 2022 it only fell to $130.
During 2023 the price had risen from $130 to almost $200, and during 2024 it performed really well only between April and July, for less than three months.
On the contrary, since the bear-market of 2022, it has only recorded two periods of great revival, one precisely at the beginning of 2023, when it bounced back from the post-pandemic lows, and the second this year.
Cramer’s hypothesis on Apple stocks
The idea expressed yesterday by Cramer is that it would be advisable to keep Apple shares in the portfolio, if one holds them, and not sell them at this moment.
Furthermore, the famous television host claims to still expect a decline, “because the bears are everywhere every minute of the day,” and then to buy them once they hit the lows.
In other words, it has effectively suggested a buy-the-dip on Apple shares in the event of a decline.
The hypothesis of the decline does not seem absurd at all, especially since the growth seems to have run its course, and since reaching the historical highs in July, the stock has been doing nothing but moving sideways.
For example, last year, after returning to $200, it moved sideways around the maximum levels of 2021 until February of this year, only to then record a slight drop to below $165.
Anyone who managed to buy that “dip” would now find themselves with a +38% in eight months, which for a stock like Apple is not insignificant.
The bad reputation of Cramer
However, it should not be forgotten that over the years Jim Cramer has gained a reputation for being someone who gets all the predictions wrong.
To tell the truth, he doesn’t always get everything wrong, but it seems that the majority of his predictions turn out to be wrong.
For example, in August of last year, when the price of Bitcoin was about $26,000, he said it was better to buy gold than BTC.
By now, he is so famous for his wrong predictions that an ETF has even been created, called “inverse Cramer,” which does the exact opposite of what Cramer suggests.
However, this ETF performed well in the second part of 2023, but in 2024 it performed very poorly. This means that Cramer’s forecasts this year turned out to be better compared to those he made last year.
Apple today
It must be said that the company Apple for some time now is no longer the absolute dominator of technological innovation, as it was about ten years ago in the golden age of the iPhone.
It remains a leader in its sector, so much so that it is still the second largest company in the world by market capitalization, but it has been overtaken by Nvidia, which is the new queen of technological innovation thanks to artificial intelligence.
In fact, in recent months Apple was also surpassed by Microsoft in market capitalization, even if only for a brief moment, and now Nvidia, Apple, and Microsoft are the only three companies in the world that capitalize more than 3 trillion dollars.
Furthermore, there are only two other companies that have a market capitalization of more than 2,000 billion, and they are Alphabet (formerly Google) and Amazon.
There are, however, other realities that are experiencing strong growth.
The first, paradoxically, is Meta (formerly Facebook), which after falling into decline a few years ago is recovering very well precisely thanks to artificial intelligence and some innovative devices like smart glasses.
The second is Tesla, given that Elon Musk has joined the small circle of Donald Trump’s collaborators.
So there are giants capable of draining capital from the financial markets at the expense of Apple, unless the Cupertino company manages to find a way to relaunch itself, perhaps precisely with artificial intelligence.
