After Apple Inc.'s 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
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.
“Oh and, tell me, please, who was surprised by the forecast guidedown? The stock should never have been up that much…,” he stated.
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.
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.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Apple
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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