The earnings miss from Apple last night was not only uncharacteristic of the iPhone maker, but it was unacceptable, says Cramer. Part of the issue was consumers holding off on purchasing a new iPhone until the iPhone 5 comes out, but another part of the problem was that Apple isn't immune to Europe. Cramer says he doesn't like when companies miss earnings by this much and thinks the stock deserves to take a hit.
Cramer points out that when a company misses earnings by the extent Apple did and goes down less than ten percent, it is unusual. While he thinks the stock could go lower from here, he reiterates that he thinks people should own the stock, not trade it.As far as products are concerned, the iPhone is what customers want in the smartphone arena, says Cramer. As Siri is improved the demand for the phone will ramp up. He goes on to say "I think the iPad is going to replace textbooks in the country. The iPad is really game, set, match." --Written by Lindsey Bell in New York. >To follow the writer on Twitter, go to Lindsey Bell.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV