Shares of Apple Inc (NASDAQ: AAPL) are already up nearly 40% for the year but Jim Cramer continues to be bullish on the multinational tech giant.
Why is Cramer bullish on Apple stock?
Earlier this month, the Nasdaq-listed firm reported market-beating results for its second financial quarter (find out more). According to the Mad Money host:
If it’s a consumer-packaged goods company, then the stock can easily blow to $200 … It’s the greatest tech company that’s also loved by the consumer. It’s got 99% customer satisfaction.
Cramer’s view is in contrast with Toni Sacconaghi. The Bernstein analyst in a research note today reiterated his “hold” rating on Apple stock with a price objective of $175 that does not represent a meaningful upside from here.
Apple is basically a platform company
Cramer is constructive on the Cupertino-headquartered company because it’s beyond the debate of tech or consumer packaged goods in the first place. He sees Apple Inc primarily as a platform. On CNBC’s “Squawk on the Street”, Cramer noted:
When you buy their phone, you start layering on services. So, it’s actually the greatest service story. Not consumer packaged, not tech, it’s the best platform to serve all things they want.
In its recently concluded quarter, services brought in $20.9 billion in revenue for the iPhone maker – up 5.50% from a year ago. Jim Cramer as bullish on the Apple stock also for the company’s commitment to expanding its footprint in India.
Wall Street currently has a consensus “overweight” rating on this tech stock.
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