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Jim Cramer, Cowen's David Seaburg Take On Apple After Q1 Beat

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Jim Cramer, Cowen's David Seaburg Take On Apple After Q1 Beat
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Some of the most notable stocks including Apple Inc. (NASDAQ: AAPL) are trading lower since the start of 2018. But one Wall Street expert said it's a "no-brainer" to buy Apple's stock at today's levels. 

The Experts

  • David Seaburg, head of sales and trading at Cowen.
  • CNBC's Jim Cramer.

'No-Brainer'

Apple hit an all-time high of $180.10 in early January but is now in correction territory, off by more than 10 percent from its high. At current levels, it'ss a "no-brainer" to be buying the stock for a few reasons, Seaburg said during a recent CNBC "Trading Nation" segment.

Apple's stock saw a "tremendous" amount of de-risk ahead of last week's earnings report, which did prompt a few notable Wall Street analysts to downgrade the stock, he said. But now "a lot of the weaker hands" are out of the stock — but the company's long-term fundamentals remain in place, Seaburg said. 

Apple is backed by a massive cash hoard in the hundreds of billions of dollars that is only growing, Seaburg said. This gives Apple the ability to "flex their muscle" in multiple meaningful ways, including returning cash to shareholders or with a meaningful acquisition that could not only be transformative but would send the stock "off to the races," he said. 

Apple has several internal catalysts that the Street may not even fully appreciate, Seaburg said. For example, Apple could sustain its Services growth rate at 20 percent or more per year, which would result in gross margin improvements, he said. 

Related Link: Bernstein's Toni Sacconaghi Steps To The Sidelines On Apple, Sees Minimal Upside Ahead

Cramer Agrees — Sort Of 

Apple's Feb. 1 earnings report was the company's best-ever, but the stock saw heavy pressure due to disappointing guidance and some negative reports from Wall Street, Cramer said. Similar to Seaburg, Cramer agrees that Apple's stock remains a compelling buy — but he isn't suggesting buying at current levels is a "no-brainer."

"I still say own it, don't trade it," Cramer said. "But I've also been saying, and I reiterate, it hasn't bottomed yet."

'A Trifecta Of Goodness'

At a time when Apple's stock entered correction territory, shares of Amazon.com, Inc. (NASDAQ: AMZN) moved in the opposite direction and hit an all-time high after Thursday's earnings report. Cramer said the company offers investors a "trifecta of goodness": 

  • Strong retail numbers. 
  • A growing advertising business.
  • An unbeatable web services segment in AWS.

"I know it was up nearly 40 points today. Guess what? It's a buy," Cramer said. "Amazon would've been up 100 if the tape weren't so ugly."

Alphabet Not A Buy

Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)'s earnings report last week fell short of what many investors expected, Cramer said. The management team also communicated a "kind of rest-on-their-laurels forecast that brought the stock back to earth and then some" to investors.

"Wait for more downside," he said.

Related Link:

Cramer: Why You Should Buy Apple On Weakness Every Time You Can

Photo courtesy of Apple. 

Posted-In: CNBC Cowen David Seaburg Mad Money Trading Nation Jim CramerMedia Best of Benzinga

 

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