This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Jim Cramer's 'Mad Money' Recap: Stick With Apple Over IBM

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.


NEW YORK ( TheStreet) -- In the technology world, relevance matters, Jim Cramer said on Mad Money Monday. Nowhere is that more evident than in the earnings of Apple (AAPL) and IBM (IBM) , both of which reported today.

Cramer said that Apple, a stock he owns for his charitable trust, Action Alerts PLUS, is a perennial innovator, a cheap growth stock that shouldn't be traded but owned for the long term. It's no wonder shares of Apple are up 26% for the year.

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

But then there's IBM, an expensive stock with no innovation or growth at all, said Cramer. This stock deserved to fall 7% on its earnings news.

Cramer said IBM is simply no longer an important name in the tech world. The only bright spot in the company's earnings was IBM's newly forged partnership with Apple and its stock buyback program.

IBM needs a plan, Cramer said, a bold acquisition to once again make itself relevant. With so many businesses leaving IBM's legacy platforms in favor of the cloud, he only hopes the company has the time and the funds make it happen.

Dethroning King Digital

Sometimes a hideous initial public offering is just the beginning, Cramer warned viewers. That has certainly been the case with King Digital Entertainment (KING) , makers of the popular mobile game Candy Crush.

After falling 15% below its IPO price back on March 25, King Digital has only seen its shares continue to falter, down 40% for the year to just over $11 a share. Cramer said the initial analyst recommendations of King were overwhelmingly positive. Unfortunately, they were also overwhelmingly wrong.

The logic at the time was that King was a much better stock than Zynga (ZNGA) , the last mobile gaming company to crash and burn in the stock market. King was indeed cheaper than Zynga, with better earnings and growth. But calling a stock better than one of the worst stocks of all time is not a reason to buy, Cramer concluded.

Growth is slowing significantly at King, Cramer noted, and it appears that Candy Crush may indeed be a one-hit wonder. Making matters worse, a full 80% of King's shares are still in an extended lockup period. Cramer said when that lockup expires there could be another flood of selling as insiders try and salvage whatever value may be left in their shares.

Must Read: Apple Blows Past Estimates on Huge iPhone Sales, Upbeat Holiday Forecast

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs