Jim Cramer Says Apple's Fate Hinges on Its Next Earnings Report
Cramer flagged Apple's 7%-plus June slide tied to surging component costs and says investors need to hear directly from the company.
If you've been watching Apple's stock lately and scratching your head, Jim Cramer wants you to pump the brakes before making any big moves. On a recent episode of Mad Money, the outspoken host put Apple squarely in his crosshairs — not to bash it, but to urge patience while the picture comes into focus.
Cramer pointed out that Apple dropped more than 7% in June, and he traced a big chunk of that pain back to the skyrocketing cost of components. In plain English: the parts that go into your iPhone and other Apple devices are getting more expensive, and that squeezes the margins that Wall Street obsesses over. When costs go up faster than prices, profits can take a hit — and investors tend to sell first and ask questions later.
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His bottom line? Don't try to get too clever here. Cramer's position was straightforward — you need to see the actual quarterly earnings report and, just as importantly, listen to what Apple's executives say about where things are headed. Guidance and tone from a company as massive as Apple can move the stock just as much as the raw numbers do.
The commentary came as Cramer was also walking viewers through how to spot and profit from a broader wave of corporate takeovers hitting the market — so Apple was just one piece of a bigger strategic puzzle he was laying out for everyday investors trying to navigate a choppy environment.
For now, Apple remains a wait-and-see story according to Cramer. If you're holding shares, he's essentially telling you to sit tight. If you're thinking about buying, the next earnings call could be the clearest signal you'll get about whether the component-cost headwind is a short-term bump or something more serious. Continue reading at Yahoo.
