Squawk on the Street
CNBC Investing Club: Cramer's Morning Take on Apple 11/3/26
· Summarized
Key takeaways
- Cramer cautions against allowing one negative conference-call detail to erase an otherwise strong company result.
- He believes Apple’s DRAM concerns may be overstated, especially given Micron’s stock chart and the possibility of double or triple ordering.
- Apple’s quarter beat in iPhone, Mac, and wearables, home and accessories, with China up 21%, despite an iPad miss and services growth of 9.8%.
Summary
Cramer criticizes one-negative-detail reactions
Jim Cramer says investors often hear one negative point on a conference call, watch the stock fall, and treat that point as decisive, making all subsequent positives irrelevant. He sees this pattern in Palantir and Apple: both delivered excellent calls with some “hair,” yet analysts searched for reasons to criticize stocks that remain well bid.
DRAM prices create conflicting signals for Apple and Micron
Cramer says Apple’s DRAM concerns should be weighed against Micron’s chart: he cannot simultaneously believe DRAM problems are worsening for Apple and that Micron’s stock is going too low. Jeff Marks notes Micron frames high gross margins as a durable, secular cycle, but Cramer recalls warnings that Lam Research and KLA benefited from double- or triple-ordering. He suspects some accounts may be overordering and says Apple’s relative performance versus Micron suggests DRAM prices could eventually pop their bubble.
Apple beats in most major businesses despite misses
Marks reviews Apple’s better-than-expected quarter: iPhone and Mac beat estimates, as did wearables, home and accessories, while iPad missed and services grew 9.8%, slightly below expectations for 10%. Apple guided to a continued slowdown next quarter, but China was a major upside surprise at 21%. The discussion ends with no clear timing for supply to meet demand.
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Show notes
Cramer thinks this tech stock is still hot despite RAM price pressures. Become an Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks every day as they talk candidly about the market’s biggest headlines, analyst calls and holdings in the Charitable Trust – and see up close how they decide when, and if, to take action on stocks. Sign up here: cnbc.com/morningtake
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