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Apple Remains a Stock to Own in 2020, Jim Cramer Says

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If you've been following Jim Cramer and his Action Alerts PLUS charitable trust, you know that Cramer’s rule for Apple  (AAPL) - Get Apple Inc. Report always has been “own, don’t trade” the stock.

That motto was apparent in 2019 even after the stock had a rough start to the year since  Cramer really believes in the tech giant and its CEO, Tim Cook. That optimism was bolstered by a strong second-half performance from the stock as services revenue and new hardware products helped the company further diversify away from its iPhone-centric revenue model.

Apple’s 2019 started off on a rough note after it issued a profit warning in January. But  those concerns soon subsided and over the past 12 months the stock has more than doubled. Apple is now trading at an all-time high.

Jeff Marks, senior portfolio analyst at Action Alerts PLUS, said on the monthly call for AAP members that investors have “finally really started to embrace the services revenue, which is higher margin, faster growing then some of the unit sales.

"They welcomed wearable services, the Air Pod Pros, which you can't even get anymore in stores. And now people are looking forward to the 5G launch,” Marks added.

Cramer and Marks argued on the call that the lifetime value of the services revenue stream for Apple is enough to justify their stance that this is a stock that investors should not trade. 

Cramer also told AAP members on the call which stocks he is looking to trim in 2020. Register here to get the inside scoop on Cramer's trades as soon as he makes them.

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