Jim Cramer on Apple: Although Apple Inc. (NASDAQ:AAPL) management is trying to do and say all the right things, many are concerned about the company’s reputation.
Jim Cramer is among those who believe that Apple is turning analysts against the company.
In a recent CNBC segment, Cramer sat down and discussed a few of the more important points from yesterday’s earnings report as well as why he believes Apple Inc. (NASDAQ:AAPL) management is walking a fine line.
Here is how he started the piece:
“I am going to give you the positive first. Given the fact that tech stocks have bottomed at a certain yield, this is possible that they put in a floor soon. When everyone downgrades, you tend to want to buy, not sell.”
After setting things up with that information, Cramer begins to talk in greater detail about Apple Inc. (NASDAQ:AAPL) management and how they are being perceived by analysts:
“But that said, management here is now despised.”
Before we go any further, it is important to note that you could hear the concern in Cramer’s voice. Apple management has faced its share of issues over the past few months, and he feels that this is a major problem for the company moving forward.
Image: Apple Inc. (NASDAQ:AAPL)
“This is the kind of conference call that was a revolt against management. Management talks about ecosystem, people are just trying to find out how slow things really are. Management talks about China and they have got 11 stores, but there are a lot of people in China. How about having a thousand stores? There isn’t anything about this call that isn’t the people rising up against Tim Cook. And so, what you have, is a situation where management is in complete denial. What people wanted was some growth, what people wanted was new products, and what people wanted was a change of the discourse.”
Here is one last quote from the piece:
“The chorus is saying, look, you are not as good as you think you are so you cannot charge what you used to. And they are saying we are every bit as good and we have this ecosystem and in the end the ecosystem feels a little bit like the Brazilian rain-forest and the analysts are trying to burn it down.”
This is one of those pieces that is well worth watching. If nothing else, Cramer will keep you entertained from beginning to end.
Check out all his thoughts on Apple Inc. (NASDAQ:AAPL) on the next page: