Cramer: Apple Downgrade Clears the Air, Stock Trades Off China

Apple (AAPL) shares crept into rare territory in Wednesday's trading session, reaching nearly 10% below its 50-day moving average. Analysts at Bank of America/Merrill Lynch lowered their rating on the tech giant to NEUTRAL from BUY with a $130 price target, citing the slowdown in iPhone growth that could pressure shares over the near-term. BofA/Merrill analysts pointed to the company’s slowing revenue growth and noted that its initiatives including the Apple Watch, Apple Pay and Apple Music will take time to gain traction. The firm added that share gains in China, a major market which makes up a quarter of phone sales, will be tougher to expand. TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, tells investors he hasn’t changed his view on the stock and still wants them to own Apple, not trade it. He added that Apple trades off of what's happening in China and the downgrade finally helps clear the air. Apple, the world's largest company by market capitalization, has seen its shares drop to their lowest level in 6 months after reporting earnings late July.