Let’s talk about Apple again. KeyBanc Capital Markets downgraded Apple stock from a sector-weight hold rating to an underweight sell ahead of Thursday’s earnings call following weeks of mixed comments about demand for the iPhone 16. Analysts set a price target of $200 per share, citing concerns about sales of new AI-powered devices. This represents more than 13% downside from current levels, which are just around the corner from Monday’s all-time high closing price of $236.48. Jim Cramer scoffed at the call, warning on Friday that investors who follow these sell recommendations are likely to “miss out on the next big move” in Apple stock. ”[Analysts] “We always want to be right in the next eight or 10 points, not the next 100 points,” he added. “We want to be right in the next 100 points.” [next] That’s why Jim was successful in sticking to Apple’s “It’s mine, don’t trade” mantra. Looking at how Apple has traded calls that amount to major sells over the past five years, the idea of jumping in and out starts with Atlantic Equities in January 2020 and continues through the KeyBanc downgrade late Thursday. The long-term trajectory of Apple stock is certainly up, but if you know to exit Apple stock. If you want to re-enter at some point, two things have to be right: the time to sell and the time to buy back. It’s almost impossible, but here’s why Jim doesn’t play that game. For example, Barclays’ share price in January was, in retrospect, a decent share price. Cautious commentary on Wall Street kept the stock declining through 2024, ultimately hitting a 52-week low of $164 in mid-April. To catch something at or near its bottom for a split second before the stock heads off to the races again. If I had missed the April lows by even a few weeks, I would have had to buy back where I sold. Conclusion The safest and most profitable option is to stick with Apple for the long term. If you believe, like the club, that stock prices will continue to rise over time, follow Jim’s “own it and don’t trade it” strategy. It has served gyms and clubs well through the years of running his charitable trust portfolio. Certainly, “own it and don’t trade it” does not mean that you will never make a profit or reduce your position if you overweight your diversified holdings. (Jim Cramer’s Charitable Trust is long AAPL. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you receive trade alerts before Jim makes a trade. I will receive it. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
An attendee holds two iPhone 16s during an event at Apple’s Steve Jobs Theater on its campus in Cupertino, California, on September 9, 2024.
Manuel Orbegoso | Reuters
