Why Jim Cramer says investors should own Apple, not trade it

Key Concepts

• Apple Stock Performance: Surge driven by analyst upgrades and strong product reception.
• "Own, Don't Trade" Philosophy: Cramer's consistent advice for Apple, emphasizing long-term holding due to product loyalty.
• Analyst Upgrades: Multiple analysts initiating or upgrading Apple stock, contributing to its rise.
• iPhone 17 Series: Described as a "monster hit," with specific mention of the "iPhone air" and "heaviest duty" models.
• Market Impact: Apple's surge buoyed the broader stock market, with significant gains in the Dow, S&P, and Nasdaq.
• Cramer's Investment Advice: Repeated emphasis on Apple's product strength as the driver of stock performance, advocating for long-term ownership over frequent trading.

Apple Stock Surge and Analyst Support

Jim Cramer discusses the significant surge in Apple's stock price, attributing it to "hefty research reports" and the company's consistent ability to produce "the best there is, the most beloved products on earth." This strong product appeal, according to Cramer, is the fundamental reason why investors should "own Apple, Don't trade it." He reiterates his long-standing advice, stating, "as long as Apple makes the best products, people will buy them and the stock will eventually play catch up."

The surge in Apple's stock was accompanied by broad market gains. The Dow Jones Industrial Average increased by 516 points, the S&P 500 rose by 1.07%, and the Nasdaq Composite saw a jump of 1.37%. This market-wide positive movement was partly fueled by Apple's performance.

Analyst Initiations and Upgrades

A key catalyst for Apple's stock rise was the simultaneous action of three different analysts initiating coverage or upgrading the stock. Notably, Ben Righteous from Melius is mentioned as an analyst who has been "on board the whole way." Cramer suggests that investors could have easily participated in Apple's growth by following his show, belonging to the CNBC Investing Club, or by purchasing his book, "How to Make Money in Any Market," where he frequently discusses the stock.

The "Own, Don't Trade" Strategy

Cramer strongly advocates for a long-term investment strategy for Apple, contrasting it with frequent trading. He argues that "you will never catch these big moves like today. Entirely unexpected. If you're constantly flitting in and out, in and out. You won't be selling at the bottom and buying at the top." This philosophy is rooted in the belief that Apple's enduring product appeal and customer loyalty ensure its long-term value, making short-term trading strategies less effective and potentially detrimental.

Success of the iPhone 17 Series

The transcript highlights the "monster hit" status of the recently released iPhone 17 series. Specific models are mentioned, including the "iPhone air," described as feeling "like a candy bar in your hand," and the "heaviest duty" model. This positive reception of new products is presented as a direct driver of consumer demand and, consequently, Apple's stock performance.

Conclusion and Key Takeaways

The primary takeaway from the transcript is Jim Cramer's unwavering conviction in Apple as a long-term investment. He emphasizes that the company's consistent delivery of highly desirable products creates a loyal customer base, which in turn drives sustained stock appreciation. Cramer advises investors against short-term trading, advocating instead for holding Apple stock to capture its significant upward movements, which are often unexpected and driven by strong product cycles and positive analyst sentiment. The recent surge in Apple's stock, supported by analyst upgrades and the success of the iPhone 17 series, serves as a prime example of this investment thesis in action.