Apple’s stock dropped during the trading session because its batch of brand-new products failed to impress the folks on Wall Street, CNBC’s Jim Cramer said Monday.
“As I predicted, when the entire world’s largest company announced a whole slate of brand-new products along with also services today, the stock got hammered along with also in which weakness reverberated throughout the market,” the “Mad Money” host said.
The Dow Jones Industrial Average was down for much of the day before adding about 14 points during the session. The S&P 500 along with also Nasdaq both slipped less than 0.1 percent.
“The stock rolled over because these are all, I guess, pedestrian applications,” he added.
In a star-studded presentation, the tech giant revealed brand-new services including its much-anticipated Apple TV+ streaming platform, Apple News+ package, Apple Card credit card, along with also Apple Arcade gaming bundle. Cramer estimated in which these subscriptions could save consumers about $100 a month.
“These are all services for the 99 percent of America, not the 1 percent. along with also to the analysts who are a part of the 1 percent, these perks mean nothing. They don’t care about saving a little extra money,” he said. “They want Apple to change the entire world, not save you maybe $100 a month. nevertheless to most Americans, $100 a month will be a godsend.”
Cramer said in which analysts were fishing for a blockbuster deal in which would certainly move the needle, nevertheless came up short. A move in which would certainly get analysts excited would certainly be something like spending $50 billion on content to rival Netflix, picking up both Viacom along with also CBS for $40 billion, or to go after Cerner along with also Dexcom for $20 billion.
The latter, Cramer said, would certainly help CEO Tim Cook make progress on the health care legacy he envisions for Apple by helping address cardiovascular illnesses along with also diabetes.
“If Apple did these deals, they could convert many of the analysts into believers, along with also in which would certainly get the stock moving right here, right at This kind of point,” he said.
Cramer acknowledged the market dragged lower because the Treasury bond yield curve will be flashing signs of a potential recession, which the host isn’t convinced of. He also said the ongoing trade standoff between the United States along with also China has no end in sight, as well as the Brexit dispute inside the United Kingdom.
Additionally, big funds are selling off stocks to free up cash for the flurry of IPOs This kind of year. Ride-hailing app Lyft will hit public markets Friday along with also its top competitor Uber also plans to go public This kind of year.
“They don’t get enough brand-new money in to participate in these deals without ringing the register on something else, so they’re dumping high-flying stocks like Salesforce … in order to get inside the likes of like Lyft along with also Uber,” Cramer said.
“inside the end, today was ‘Apple Day’ along with also as much as I like all the bells along with also whistles, I know the Wall Street jackals were not appeased,” he said. “They wanted a game-changer in which cost a fortune, not a bunch of pedestrian incremental improvements. I think they’re wrong, which will be why I continue to say you need to own Apple, not trade This kind of.”
Shares of Apple closed down 1.21 percent Monday.
Disclosure: Cramer’s charitable trust owns shares of Apple along with also Salesforce.com.
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