CNBC’s Jim Cramer is not backing down from his “own Apple, don’t trade it” maxim despite the stock’s drop after earnings, in which the iPhone maker said it would stop providing results for its individual products.
“I am sure there are people who will just say, ‘You know what? I have to panic and sell Apple because Apple must be turning down and it’s going to be herd animals all over the place.’ And all I can tell you is wait a second,” Cramer, host of “Mad Money” and longtime Apple bull, said as Apple’s stock lost nearly 7 percent in after-hours trading.
“Apple’s ecosystem continues to grow,” he continued. “I accept that the stock is going to go lower, but remember, we just had 1000 Dow points that were worth capturing even if we get what I’m regarding as an undeserved crushing of the stock of Apple tomorrow.”
Cramer predicted that Apple’s slide could “cause a pause in the tech rally” on Friday, and that analysts would immediately downgrade the stock on what some saw as a muted forecast.
But he wouldn’t give up on “a stock that was up 30 percent coming in that reported an amazing number but was conservative and changed the way it’s breaking things down,” he told investors.
“Here’s what I say: I would still own it. I wouldn’t trade it,” the “Mad Money” host said. “For those who have never bought the stock, I would start nibbling. No need to be aggressive. The market, other than the last three days, hasn’t been all that welcoming of late.”
Click here for more on Apple. Click here for Cramer’s take on the stock market’s continued recovery.