We recently published a list of Jim Cramer on These 9 Stocks Recently. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other stocks that Jim Cramer discussed recently.
On Wednesday, Jim Cramer, the host of Mad Money, shared his thoughts on the importance of recognizing the scale of opportunity when evaluating a company.
“Sometimes I wonder that I’m doing a big disservice to you as a viewer when I talk about earnings per share or upside surprises or possible buybacks, dividends. I wonder if I’m failing you for focusing on what feels like the minutiae right now.”
READ ALSO: Jim Cramer’s Thoughts on These 5 Stocks and 7 Stocks on Jim Cramer’s Radar
According to Cramer, there are instances when the opportunity at hand is so vast that the smaller elements seem insignificant, and nowhere was this more apparent than at NVIDIA’s annual GTC event. While he usually focuses on the larger game, one in which every player stands to win, Cramer said that he would rather talk about the finer points of individual stocks.
At the event, Cramer emphasized that the conference was less about today’s trends and more about what lies ahead, especially in terms of how companies could transform industries by embracing GPU kingpin’s cutting-edge technology. He pointed out that the real shift happens when companies, not consumers, adopt this technology.
“Notice I said if other companies embrace it, not you, not the consumer and that’s hard to bring light. We’ve gotten used to consumer-oriented tech conferences for years.”
The company’s work, he argued, is not aimed at the everyday consumer but at businesses and enterprises, which adds a layer of complexity in communicating its value. Cramer noted that while the focus on the enterprise might seem challenging, it is also a double-edged sword. On one hand, it is a tougher sell to individual investors, many of whom hold stocks but do not fully understand the significance of enterprise-oriented stocks. The lack of understanding, Cramer suggested, often drives investors to sell off shares in companies when their performance dips, as has happened recently. He added:
“The good news, the enterprise is much bigger than the consumer so it’ll produce much bigger earnings per share. Catering to the corporation is typically a much better business model than catering to the individual.”
Our Methodology
For this article, we compiled a list of 9 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 19. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A wide view of an Apple store, showing the range of products the company offers.
Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Discussing how tech conferences used to be enterprise-oriented, Cramer mentioned Apple Inc. (NASDAQ:AAPL) and stated:
“We’ve gotten used to consumer-oriented tech conferences for years. Like whenever Apple launches a new phone, I mean, does it dazzle? Is it explosive? Is it a dud? And of course, will we buy it? You know that if Apple impresses enough people, that stock’s going to go higher.”
Apple (NASDAQ:AAPL) creates and markets a range of consumer electronics, including smartphones, computers, tablets, wearables, and accessories, as well as services. The company also provides subscription services like Apple Music, Apple TV+, and Apple Arcade, and manages platforms such as the App Store and Apple Pay. Last week on Squawk on the Street, Cramer said:
“I think that Apple, I’ve been saying it, own it don’t trade it. . .I said look I think Apple’s going lower, wasn’t, I don’t think it’s revelatory. You can’t, if you can’t make the estimates your stock goes lower. I mean it’s not like they’re somehow immune to that. And I think that the Morgan Stanley piece yesterday was very good about trying to assess exactly how much lower. When you miss your numbers, you miss your numbers. And it doesn’t matter who you are… Look there’s a cadence to having your stock go up and Apple doesn’t have it.”
Overall, AAPL ranks 6th on our list of Jim Cramer discussed recently. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
Hedge Fund Resource Center