Here's what you need to know about the possible resurgence of FAANG.
"You know, we're going to start ramping up earnings season and we'll start to see some of these companies like Apple came out and said that we're going to possibly have a little bit of a warning. Now that they did it three or four weeks ago that might not have been as harsh the market would have been unkind," Cheslock said. "But now three weeks later after all their suppliers all issued warnings they came out and it really surprised the market. And that's why they punished Apple so severely. And it may not have been an indication of what Apple can provide going forward but I think it just put them in the penalty box a little bit. So earnings are going to be an integral part of what this market looks like going forward. If company hasn't issued any warnings yet, they could face investors, a harsh reality."
Jim Cramer sat down with Tim Cook, CEO of Apple, Tuesday, Jan. 8. Apple is TheStreet's sister site's, Real Money, stock of the day. The two discussed a variety of topics, which included Apple's fall from grace--after the iPhone maker announced that it was slashing its revenue forecast to $84 billion from Wall Street's consensus of $91.5 billion.
"Well, you know [Apple] took a lot of steam out of the FAANG and there's a lot of perceived value on there based on where they were trading only two months ago. So can it be a market leader again? Absolutely. Valuations now become more attractive," Cheslock said. "And if we get any kind of sign that we're going to have this trade dispute could be over, the FAANG stocks could be well rewarded."
Wednesday morning, Cramer's column on Real Money focused on Apple. His title, in fact, was Why Wouldn't You Own Apple?
"Yesterday I walked away from my interview with Tim Cook, the CEO, certain as ever that you should own this 11 times earnings stock because I think the company is much bigger than a given story of an order cut or a shade down of numbers by Skyworks Solutions (SWKS - Get Report) this morning, a forecast cut pretty much in-line with the Japanese report," wrote Cramer in his column.
Apple is a holding in Jim Cramer's Action Alerts Plus portfolio.
Want to watch the full interview with Cheslock? You can find it here.