Caution on Apple Rally as Sacconaghi Upgrades: Cramer Advises Waiting for Shares

Monday through Friday from 6:00 to 7:00 PM Eastern Time (ET), CNBC’s Jim Cramer expressed caution regarding Apple’s recent rally, which he attributed primarily to an analyst upgrade. He suggested that the gains may not be sustainable and advised investors to wait before purchasing shares of the tech giant. Bernstein’s Toni Sacconaghi upgraded Apple from neutral to buy on Monday and stated that it was time “to buy the fear.” The analyst argued that the stock had become too cheap, suggesting a strong iPhone 16 cycle ahead and asserting that weakness in China is more cyclical than structural. Cramer countered by stating that he wanted investors to own Apple rather than trade it but advised them to wait before making their moves because of potential weak earnings reports for both the current quarter and the next one.
Apple’s upcoming earnings report, scheduled for Thursday evening (ET), has led analysts to set low expectations, yet shares still rose by 2.48% during trading hours on Monday as rumors continued circulating about a possible upgrade in iPhone models this year. Cramer acknowledged Sacconaghi’s status as an accomplished analyst but questioned his accuracy regarding Apple stocks, implying that “it feels somewhat suspicious” for the expert to now suddenly climb aboard with bullish sentiment at this time when he has not traditionally demonstrated such insights into Apple shares in previous instances.
Cramer remarked that Apple rallied due primarily to Sacconaghi’s upgrade recommendation but warned against overly optimistic interpretations of these developments, suggesting they lacked any significant staying power or lasting impact on the stock price. The CNBC Investing Club Charitable Trust owns shares in this corporation while potential followers and other stakeholders who seek further information about Jim Cramer are encouraged to contact him via various social media platforms such as Twitter (@jimcramer), Facebook, and Instagram for additional insights into his world of investing. Interested parties may also reach out directly by emailing madcap@cnbc.com with any questions or suggestions regarding the “Mad Money” website’s content.