“The issue for those who hate Apple? Sorry, guys. No more new ammunition,” Cramer, host of “Mad Money,” said after the iPhone maker’s report.
Apple’s first-quarter results were slightly above Wall Street expectations, with earnings beating analyst estimates by 1 cent and the top-line revenue of $84.3 billion beating consensus estimates of $83.97 billion. Revenue for the iPhone came in slightly below projections, in line with Apple’s early January warning about its first-quarter results.
Yet before the report, the negativity was near-deafening, said Cramer, whose charitable trust owns shares of Apple. People were worried about Apple’s service revenue weakening, which didn’t happen, or a slowdown in Apple Watch sales, which also didn’t seem to pan out.
“The news simply wasn’t horrible enough to sate the bears. In fact, the stock is trading in after-hours above the pre-announcement price,” Cramer said.
Does the longtime Apple bull think the stock is back? Perhaps, if the United States and China are able to make a trade deal. Greater China is Apple’s third-largest market by revenue.
“We get a trade deal? I think you’ve got a $180 stock, up $20 from here,” he said. “There just isn’t that much risk now after we got the high sign on the January numbers.”
Apple’s stock ended Tuesday down 1 percent ahead of its earnings report. The stock popped about 5.5 percent in after-hours trading following the release.