Jim Cramer -- Don't Worry About Apple's Supply Chain Orders
Shares of Apple (AAPL) - Get Report are down 2.5% on Tuesday -- one day ahead of its new iPad Pro launch -- on reports from Credit Suisse that Apple has cut component orders by as much as 10%.
The analysts view weakness in the stock as "an attractive entry point," and despite lowering iPhone estimates, maintained their outperform rating and $140 price target.
Investors shouldn't fret about these supply chain reports, according to TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio.
Predicting supply chain orders for Apple is very difficult. For that reason, investors should not act on those reports, he said on CNBC's "Stop Trading" segment.
Apple's decline is weighing on the Nasdaq, and it could also be adversely impacting Microsoft (MSFT) - Get Report , which is down over 1% on the day.
The decline comes despite analysts at Piper Jaffray maintaining their overweight rating, but raising their price target to $64 from $53.
It's unlikely that analysts would raise their price target without feeling confident that the market for PCs is near a bottom, Cramer said. This would be bullish for Microsoft.
Cramer also said too many investors continue to underestimate CEO Satya Nadella.
At the time of publication, Cramer's Action Alerts PLUS was long AAPL.