Apple (AAPL) Stock Higher Following Music Service Launch

NEW YORK (TheStreet) -- Shares of Apple Inc  (AAPL) were up 0.84% to $125.57 in midday trading Tuesday, as the company launches its new streaming service Apple Music.

On CNBC's Stop Trading segment this morning, TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio said he thinks Apple Music is being underestimated, and that the new service seems meaningful.

Cramer noted that too many investors are giving up on the stock, which seems premature.

Members will get a free trial period for three-months, before paying a $9.99 per month fee, or $14.99 per family fee for the service.

Subscribers will get access to an on-demand streaming music service with more than 30 million songs, a 24-hour radio station, and a new service letting artists connect with fans.

The Recording Industry Association of America said revenue from streaming music services increased by 29% last year to $1.87 billion, while sales from digital music downloads dropped by 8.7% to $2.58 billion, CNBC noted.

Apple designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions, and applications.

The company is based in Cupertino, Calif.

Insight from TheStreet's Research Team:

Apple is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager and Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:

Apple (AAPL): Shares of Apple traded roughly flat this week. We remain confident in the company, as we have always been, especially as Piper Jaffray released a report detailing sustained demand for the iPhone. We appreciate all of the Apple's products and services, but at its core, it remains a story driven by the iPhone.

That being said, the resale values of the iPhone 6/6 Plus have shown to be comparatively higher than those of the 5S and 5C throughout the same launch period -- indicating strong demand, which should continue to drive market share higher for the company in the smartphone space and help push the stock higher. Even better, strong iPhone demand should provide a boost for the company in December 2015 to beat difficult comps.

In addition, investor Carl Icahn once again blessed the stock this week when he dubbed Apple as an undervalued name that possesses the same type of potential he saw in Netflix (NFLX) when he first invested in the company (as a reminder, Icahn sold the last of his shares in Netflix this week and made $2 billion on the overall trade).

As the company continues to perform and innovate, we have no doubt that the position will deliver more gains. We reiterate our $150 target.

- Jim Cramer and Jack Mohr, 'Weekly Roundup' originally published 6/26/2015 on ActionAlertsPLUS.com.

Want more information like this from Jim Cramer and Jack Mohr BEFORE your stock moves? Learn more about ActionAlertsPLUS.com now.

Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLE INC (AAPL) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

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

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