We recently compiled the following list. Jim Cramer talks about these 12 stocks.In this article, we’ll take a look at how Apple Inc. (NASDAQ:AAPL) stands against other stocks that Jim Cramer is currently talking about.
On Tuesday, Mad Money host Jim Cramer analyzed the day’s market activity and revealed why some Big Tech stocks gained momentum while others languished. He noted that investors are increasingly concerned about the broader economic impact of rising bond yields. Cramer first questioned how a day might unfold when recent market leaders lose momentum and asset managers return to established favorites like Big Tech.
Cramer acknowledged growing concerns about the bond market, noting that bond prices have fallen sharply since the Federal Reserve cut interest rates last month.
“…bond prices have fallen since the Fed cut interest rates last month. Bond yields, or long-term interest rates, have skyrocketed. That shouldn’t happen. But if it does, asset management They reach out to companies that are completely unaffected by changes in 10-year, 20-year, or 30-year Treasuries.”
Kramer likened Wall Street to Chinatown, suggesting that it sometimes precludes easy understanding. He said people seem to be as quick to abandon the market’s latest winners as they would be tossing out hot French fries. He went on to explain that today’s disappointing earnings report was inconsistent with the general view of strong employment coupled with interest rate cuts and was confusing.
“Look, this morning we received a series of earnings reports that didn’t add up. They didn’t fit the paper. They were disappointing. Even with the Fed cutting interest rates. Even though employment remains strong, they don’t respond to moments of relative calm.When these troubled quarters roll in for several quarters a day, asset managers default to who they are. Going back to the tried and true growth story we all know and love, I might add, yep, the Titans of Tech. You know what? Administrators like this can’t help themselves. They feel like they need to move from a situation where they were doing well to something that’s less susceptible to a big rate cut cycle.”
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He referred to “allegations of disappointing performance” and said he chose the word “allegations” because he highly values these companies and does not want to damage their reputations. Cramer said rising yields on the 10-year Treasury will send money back to these big tech companies. He noted that on days like Tuesday, large investors often worry about cyclical stocks, and sectors as diverse as aerospace, home construction and even auto parts.
He reassured viewers that this phenomenon is well known. It’s been a recurring theme for over a decade. Mr. Cramer suggested that funds could easily return to their former favorites, but it may take a day or two for that to happen, given the volatility of the current market environment. It shows that.
Finally, Kramer noted that Big Tech has made a huge comeback. He said:
“But at the end of the day, Big Tech’s big comeback today is because of the bond market and has nothing to do with the stocks themselves. So owning a piece of the Magnificent Seven for diversification. Please note that any rally hiatus is temporary, even if necessary.”
our methodology
In this article, we have compiled a list of the 12 stocks that Jim Cramer featured on the October 22nd episode of Mad Money. Stocks listed in ascending order of hedge fund sentiment as of Q2, as quoted by insiders. Monkey’s database of over 900 hedge funds.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
A wide view of the Apple Store showing the range of products offered by the company.
Number of hedge fund holders: 184
Cramer said Apple Inc.’s (NASDAQ:AAPL) stock price hasn’t been as high as some of its peers. He also commented on the latest news regarding iPhone sales. he said:
“There was some negative news today regarding iPhone sales. It’s not enough to make you want to sell, but it’s enough to bring the stock down. It’s not just an analyst report, it’s a theory that Apple iPhones are selling well. I’m getting contrary numbers from Verizon…I wouldn’t trade Apple, I’d own it.”
Apple (NASDAQ:AAPL), widely known for its groundbreaking iPhone, has cemented its reputation as one of the most respected companies in history. The company is currently approaching a significant upgrade cycle driven primarily by innovations in artificial intelligence. However, recent market reactions have shown some caution. Following Verizon’s third quarter results, the company’s stock price fell.
MoffettNathanson analyst Craig Moffett highlighted Verizon’s retail postpaid connectivity upgrade rate at 3.0%, down from 3.4% in the same period last year when the last iPhone was released.
Moffett noted that Verizon’s third-quarter data includes only two weeks of iPhone 16 sales, so it’s premature to conclude that the upcoming Apple cycle will be smaller than last year. Nevertheless, he noted that this was not an encouraging start. Similarly, AT&T CEO John Stankey said during the company’s earnings call that initial iPhone sales were down slightly compared to the previous year.
According to TipRanks, industry analyst Ming-Chi Kuo said on October 23 that a recent study found that Apple (NASDAQ:AAPL) has cut iPhone 16 orders by about 10 million units from Q4 2024 to H1 2025. It has been reported that this has become clear. Most of these reductions affect non-Pro models, with new production forecasts for the second half of 2024 down from approximately 88 million units.
As a result, total iPhone production forecasts for the coming quarters have also been adjusted, with approximately 80 million units, 45 million units, and 39 million units expected in Q4 2024, Q1 2025, and Q2 2025, respectively. There is. Some investors are hopeful that advances in Apple Intelligence could lead to a significant increase in iPhone shipments in the near future, but Kuo said the recent drop in orders is a sign of such optimism. We believe this indicates that expectations may not materialize in the near future.
Entire AAPL 5th place It’s on Jim Cramer’s list of stocks he’s currently talking about. While we acknowledge AAPL’s potential as an investment, we believe AI stocks are more likely to deliver higher returns and achieve them in a shorter time frame. If you’re looking for AI stocks with more promise than AAPL, but trading at less than 5x earnings, check out our report. cheapest AI stocks.
Read next: 8 Best Wide Moat Stocks to Buy Right Now andThe 30 Most Important AI Stocks by BlackRock.
Disclosure: None. This article was originally published on Insider Monkey.
