Here’s our Club Mailbag email [email protected] — so you send your questions directly to Jim Cramer and his team of analysts. We can’t offer personal investing advice. We will only consider more general questions about the investment process or stocks in the portfolio or related industries. This week’s question: I joined the Club this summer and picked up Apple as an “own it, don’t sell it.” stock. Since the fall, it has done nothing. There have been court setbacks. The new EU rules taking effect in January. Now the patent loss. What are the catalysts to keep this stock in my portfolio? — Thanks, Dave You aren’t wrong to call out a lack of meaningful near-term catalysts for Apple . The most concrete event of 2024 is likely the launch of the Vision Pro headset, but that’s not expected to do much in terms of sales or earnings — at least not right away. We could also see some kind of generative-AI update to Siri. Neither of these things are a reason to buy or sell Apple right now at the current price. However, the reason Apple is designated an “own it, don’t trade” stock is because near-term catalysts are less important than the longer-term trajectory. The issue isn’t getting out, it’s getting back in. Some companies are too strong and certain trends are just too powerful to be concerned with short bouts of volatility or periods of consolidation. If 2023 taught us anything it’s that the stock market will always surprise you. Did you see the Nvidia rally coming? Did anyone, given the earnings estimates coming into 2023? And if Apple’s history has taught us anything, it’s that the company always manages to find a way to attract new and existing customers alike. Apple’s stock is not the greatest performer because of market cap, but the market cap is a signature of its great performance as a company, one that comes in spurts and is often a laggard. One important caveat: While we wouldn’t look to exit Apple, we will still consider trimming the…
Read the full article here
Leave a Reply