Apple, Inc. AAPL shares have experienced a rebound this year, although their performance has lagged behind other mega-cap tech companies. The stock saw a rally on Wednesday, prompted by the announcement of the iPhone 15 launch date and the broader market’s strength, influenced by hopes of rate cuts.
A Diverse Portfolio: The increase in Apple’s stock value signifies the recognition that the company’s influence extends beyond being solely a handset manufacturer, noted CNBC Mad Money host Jim Cramer in a recent post on X, previously known as Twitter.
“The people who sold Apple into the big decline will not be able to get back in,” the stock picker said. “They simply don't understand the power of the stock.. and the franchise value.”
This skepticism, Cramer believes, originates from the perception that Apple is merely a producer of handsets.
See Also: Everything You Need To Know About Apple Stock
In another post, Cramer addressed a dissatisfied Apple user’s concerns about the iPhone. The user voiced disappointment about upgrading from an iPhone 8 to an iPhone 14 and finding the newer version priced much higher for seemingly identical features.
Cramer’s response was, “Can I suggest that you get a 23-year-old to sit down with you and teach you how to use the 14 because if you think they are even remotely the same I have a Princess phone in my garage that I can give you so you can feel more comfortable.”
Why It Matters: Cramer’s perspective aligns with Deepwater Asset Management‘s Managing Partner Gene Munster, who also considers Apple’s scope to transcend hardware.
Munster said in May, “Over the next five years, I anticipate investors will increasingly view Apple as an essential consumer staple, akin to indispensable daily products.”
This sentiment, according to Munster, is driven by optimism around Apple’s active device installation base. The company reported surpassing 2 billion active devices during its third-quarter earnings call in August, indicating ongoing growth. This robust foundation positions Apple for further ecosystem expansion.
Price Action: On Wednesday, Apple’s stock closed 1.92% higher at $187.65, according to Benzinga Pro data.
Image created using photos on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
