Updated from 11:02 AM EDT
NEW YORK (TheStreet) -- Many people are expecting Pandora Media (P) to be an acquisition target for Apple (AAPL), but "Apple wants to wipe them out," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" on Tuesday morning.
Pandora stock is gaining 7.21% to $10.70 in afternoon trading after Corvex Management urged the company to explore a sale, prompting speculation that Apple could be a potential buyer.
"I think Pandora could be bought by somebody, but I don't expect Apple to bail them out," Cramer observed in the video, above.
On this morning's show, Cramer was critical on how the market has treated Apple since the company reported weak quarterly results last month, but noted that bearish remarks from analysts is "very good for the people who want to hold" the stock.
"These analysts who have 'buys' have to downgrade for the stock to bottom," Cramer added.
Cramer explained that stocks like IBM (IBM) and Apple are "not expensive," but investors are afraid of them. He noted that investors like Carl Icahn, who closed his position in Apple last month, are "just scared."
The market is being moved by algorithm and there are low trading volumes with no significant players in the market, Cramer commented
"There's a big basket and it's called stocks," Cramer concluded. "The basket goes up, the market goes up."
Apple stock is up 0.03% to $93.91 this afternoon.
Separately, Pandora has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing stock performance.
You can view the full analysis from the report here: P
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 article's author.