Jim Cramer Says Apple Is the Tom Brady of Stocks

Jim Cramer has some thoughts on Apple's football equivalent.

Author:: Katherine Ross
Publish date:: Jul 30, 2020

Ready for Apple?

Analysts polled by FactSet are expecting Apple earnings of $2.04 and revenue of $52.13 billion for the quarter ending June 30.

"COVID-19 has made this one of the toughest quarters to form high-conviction expectations. But I believe financial results will be supported once again by services, as consumers continue to spend lavishly from home," said Daniel Martins, a financial researcher who writes about Apple. "The iPhone should be a story of pros and cons, with the April launch of the SE and earlier recovery in China helping to offset what should be a very weak North America market.”

Now Apple is full of things that make it a winner in the eyes of many investors and consumers: the iPhone, the Apple Watch, AirPods, etc. But services are starting to play a bigger part.

TheStreet's Annie Gaus wrote a deep dive into what investors should be watching when earnings are released after the bell:

Wall Street is beginning to fully appreciate what services are worth to Apple, and how they complement iPhone sales, according to Wedbush analyst Dan Ives: "The services business we assign a $600 billion to $650 billion valuation range given the increasing importance of this key revenue stream that is getting a new appreciation by investors during this COVID-19 pandemic," he wrote. Apple management will likely comment on what trends they saw across the growing services lineup, which includes the App Store, Apple TV+, Apple News+, Apple Arcade, Apple Card and other offerings.

But, let's take a step back: If Jim Cramer were to pick an equivalent of Apple in the NFL? Well, it would be Tom Brady according to Cramer.

You can follow Katherine Ross on Twitter at @byKatherineRoss.