NEW YORK (TheStreet) -- Investors need to own Apple (AAPL - Get Report) if they want exposure to the company, not trade it, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Mad Dash" segment.
Shares of the tech giant are 3.57% lower on Monday. They declined rapidly in early trading, falling over 6% in a matter of minutes before recovering. There was no immediate reason for the selloff, which some attributed high-frequency trading.
Analysts continue to boost their price targets on Apple as the stock marches higher longer-term. Cramer pointed out that Barclay's recently raised its price target to $140 from $120.
And while he doesn't doubt Apple and its products, Cramer said investors should look for the stock to boost earnings per share to justify the higher stock price, rather than counting on multiple expansion.
Multiple expansion theory is "not solid fundamentals," he said. Instead, investors should be paying the same valuation for the stock, but with the company generating higher earnings per share. "That's a real bull market," Cramer added.