Cramer: Apple's Declining Revenue Is Bullish For Apple's Stock

Apple Inc. AAPL reported on Tuesday that its fiscal 2016 third-quarter revenue fell to $42.4 billion from $49.6 billion a year. The company's net income also fell to $7.8 billion from $10.7 billion over the same time period.

So, why are shares of Apple surging Wednesday morning and having its best trading performance in recent memory?

CNBC's Jim Cramer has a simple answer to explain what appears to be twisted logic at the surface. Apple's quarterly results fit in with a general theme occurring the market in which companies are reporting results that are "good enough."

Cramer said during his daily "Mad Money" show on Tuesday that there were "many worries," especially among Apple's bullish investors, that the results could have been "far worse."

"Nope," Cramer added. "It was good enough. Better than we thought three months ago."

Related Link: History Says Odds Are Apple Shares Will Be Higher In 30 Days Than They Will Be Today

Aside from Apple beating analyst expectations, its services-related revenue "keeps on growing," and the one segment alone will be the size of a Fortune 100 company this time next year.

Cramer noted that the smallest company in the Fortune 100 ranking boasts a valuation of $28 billion but Apple's CEO Tim Cook said its value will be more than that.

Cramer also stated that Apple's quarterly results reinforces his view that investors should "own" Apple's stock and not "trade" it.

"I think this quarter could very well mark the bottom of the cycle," Cramer said. "Good enough for certain."

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