Jim Cramer Warns Apple Stock Should Have 'Never Been Up That Much' After Q3 Earnings Even As This Analyst Defends iPhone 16 Launch

Ananya Gairola

November 01, 2024

After Apple Inc.'s (NASDAQ:AAPL) forecast cuts following the company’s fourth-quarter results, “Mad Money” host Jim Cramer cautions that “the stock should never have been up that much,” while Dan Ives defends the company’s strong iPhone 16 launch.

What Happened: On Thursday, Cramer took to X, formerly Twitter, and suggested that Apple's lowered financial forecast, indicating a slowdown, has now been "absorbed" by the market, which he thinks brings down overhyped expectations to a more "reasonable" level

Okay we are over the big bad forecast cut for Apple. Tomorrow we get price target cuts and maybe a downgrade or two but now expectations are at last reasonable.. Interesting that Europe was strong for BOTH Apple and Amazon
— Jim Cramer (@jimcramer) October 31, 2024

Cramer also implied Apple hasn't faced as much criticism for spending on AI compared to other tech giants, possibly because investors don't think Apple's AI efforts are as significant or game-changing.

See Also: The Guy Who Tracked Elon Musk, Taylor Swift’s Private Jet Wants To Know ‘Who’s Behind’ His Suspended Social Media Accounts

“Oh and, tell me, please, who was surprised by the forecast guidedown? The stock should never have been up that much…,” he stated.

Let's noodle on this. The hyperscalers are all attacked for spending too much. Apple gets a free a.i. ride but it means nothing to the Apple bears…Oh and, tell me, please, who was surprised by the forecast guidedown? The stock should never have been up that much…
— Jim Cramer (@jimcramer) October 31, 2024

Contrarily, Wedbush analyst Ives defended Apple’s fourth-quarter performance. He lauded the successful launch of iPhone 16 and forecasted a robust December quarter for the company, propelled by the rollout of Apple Intelligence.

Ives also conveyed his conviction that the strong performance will persist throughout the rest of the fiscal year 2025, despite a lower guide delta for wearables, Mac, and iPad.

This was a solid q for Apple and the iPhone 16 launch appears be off to a very good start. The rollout of Apple Intelligence will result in a strong Dec q but will also flow into rest of FY25. We believe Dec guide delta is lower wearables/Mac/iPad..iPhone and Services solid🐂🏆🍎
— Dan Ives (@DivesTech) November 1, 2024

Why It Matters: Apple announced fiscal fourth-quarter revenue of $94.9 billion, surpassing analyst predictions of $94.56 billion. The company also reported adjusted earnings of $1.64 per share for the quarter, exceeding expectations of $1.60 per share.

This marks the seventh consecutive quarter that Apple has exceeded analyst forecasts for both revenue and earnings, according to Benzinga Pro.

During the earnings call on Thursday, Apple CEO Tim Cook said that the adoption rate of iOS 18.1 has doubled that of its predecessor, iOS 17.1, indicating a strong demand for the new iPhone 16.

However, previously it was reported that Apple had to resort to aggressive pricing strategies, including discounts on Alibaba’s Tmall, to counter the initial lukewarm response to the iPhone 16 in China.

Price Action: Apple’s stock fell 1.8% on Thursday to close at $225.91, and fell over 1.2% in premarket trading on Friday. Year-to-date, Apple’s shares are up 21.7%, according to Benzinga Pro data.

Read Next:

Apple Refreshes Mac Mini: Smaller Form Factor, M4 Chip Power, Carbon Neutral

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Apple

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