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:

If you liked this article you might like

Great Expectations? Apple 8 Line Not as Long as in Past Years

Nasdaq, S&P 500 Close Higher Amid Tension With North Korea

Former Apple Supplier Imagination Technologies Reportedly Sold to Chinese Firm

Week Wasn't Bad but That's Not Necessarily Good

Cramer: Food Stocks Are Going Hungry