Wall Street’s top tech analysts were beside themselves Tuesday evening after finding Apple‘s earnings report to not be as bad as feared, according to CNBC’s Jim Cramer.
“The conference call was dysfunctional. They didn’t know what to do,” said Cramer, whose charitable trust owns shares of Apple. “Analysts had their tails between their legs. They cut and run.”
Apple shares soared into early Wednesday after the company reported fiscal first-quarter earnings that largely fell in line with tapered-down expectations. Revenue for the iPhone came in just slightly below projections.
On Jan. 2, after the closing bell, Apple lowered its first-quarter guidance, which sparked a nearly 10 percent sell-off in the stock the next day. The company cited economic weakness in China as one of the reasons for the pain. But analysts had already been peppering Apple’s stock with downgrades in the months prior. They were concerned the company would suffer declines in iPhone unit sales over the next couple of years.
Cramer, who has long warned against selling Apple shares, had said at the time that he was not convinced and that he was tired of seeing negative Wall Street coverage suffocate the company’s stock.
“The news simply wasn’t horrible enough to sate the bears,” the “Mad Money” host said Tuesday night after Apple’s earnings release.
Cramer on Wednesday also praised the Apple Watch, which he said “is going to be a worldwide phenomenon” and change health care. “The watch is something to watch,” he contended. “You’re going to begin to see deals made all over the world for health.”
Just a couple of weeks ago, Cramer suggested that if Apple wants to reshape health care, it should get involved with the joint venture created by Jamie Dimon, Jeff Bezos and Warren Buffett aimed at cutting health costs for their employees.
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