NEW YORK (TheStreet) -- Shares of Apple (AAPL) - Get Report are spiking 8.28% to $104.67 in pre-market trading Wednesday after the company reported earnings and revenue that surpassed analysts' estimates for the 2016 third quarter.

Apple CEO Tim Cook told CNBC that the tech giant's services could be the size of a Fortune 100 company by 2017.

Cook said he feels "fantastic" about iPhone sales in the latest quarter and highlighted the strength of Apple's services business.

Apple sold 40.4 million iPhones in the third quarter, while analysts were expecting 40.02 million. The company's services revenue grew 19%.

"I feel fantastic about how iPhone did this quarter," Cook told CNBC, "Looking ahead, iPhone will be more important than ever."

Additionally, Cook feels good about Chinese sales.

"We are not backing off our investment in China," he noted.

Greater China sales came in at $8.85 billion for the period. Last year, Apple posted greater China revenue of $12.49 billion, CNBC said.

(Apple is a core holding of Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Apple stock.

The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: AAPL

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