Investors shouldn’t be put off by the Big Tech name given the continued selloff in shares of Apple (AAPL) on speculation of a Chinese crackdown on iPhone use among government employees. Jim Cramer said Thursday he is standing by the club’s “own it, don’t trade it” designation on Apple, which was on a two-season losing streak and wiped out more than $200 billion in market value from the stock. Was. The selling began Wednesday after the Wall Street Journal reported that the Chinese government is asking its employees not to use or even use iPhones or any other foreign devices at work, in a new move to reduce that country’s reliance on Western technology. That she was asking not to bring them to the office. Neither China nor Apple has said anything officially about the report. However, if this is true, it is still unclear how it will affect iPhone sales in China, the world’s second largest economy and where Apple derives 19% of its total revenue. This is because we do not know how many people would be banned under such a ban. Basically, investors should not rush as there are a lot of questions here. “If I really felt like a disaster was coming, I would suspend our mantra of “Own it, don’t trade it” on Apple stock,” Jim Cramer said during the club’s morning meeting on Thursday. He said of the reports, “When I source it, I don’t understand it.” He said his social media contacts in China indicate that people there are still “buying Apple.” [iPhones] Like crazy.” Jim said there is no sign of a surge in the number of people crowding Huawei’s China stores. unveiled its latest smartphone during the trip. “Apple is in the doghouse right now,” Jim speculated Thursday afternoon, because the Chinese government isn’t happy with the way Raimondo’s trip is being handled. While Beijing has previously blocked some Chinese officials from using iPhones had banned, the order has apparently been broad. Bloomberg confirmed the Journal’s reporting and said such restrictions could apply to millions of people in China. Shares of Apple declined, falling more than 3% on Wednesday and more than 3% on Thursday. Didn’t immediately respond to CNBC’s request for comment. AAPL YTD Mountain Apple’s (AAPL) Year-To-Date In a research note on Wednesday, Bank of America said Apple would not be massively affected by any restrictions among Chinese government employees. The excited setup ahead of the company’s much-anticipated unveiling of the iPhone 15, which is expected to take place at an event this coming Tuesday. “We believe the positives from new product launches are offset by risks from the weak consumer spending backdrop,” according to a note led by analyst Vamsi Mohan. Elsewhere, Daniel Ives of Wedbush Securities says the market reaction is “overwhelming”. The analyst said the potential ban would equate to a hit to fewer than 500,000 units out of the roughly 45 million devices sold in China over the next 12 months. Despite the loud noise, Apple sees massive share gains [the] China smartphone market,” Ives wrote in Thursday’s note. Still, there is some downside protection here. According to the company, 19% of Apple’s revenue comes from China, more than 43% from the US and about 25% from Europe. Latest Quarterly Earnings Report. Apple is also increasing efforts in emerging economies like India, where about 1.4 billion people live, like China. Apple is moving some of its supply chain out of China to address risks from rising geopolitical tensions between the US and the US. Chinese government. The club says Apple will remain a premium brand in China that money-minded buyers will want to buy, regardless of speculation about Chinese government regulations. (Jim Cramer’s charitable trust has long been AAPL. See here for a full list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim trades. Jim waits 45 minutes after a trade alert is sent before buying or selling stocks in his charitable trust’s portfolio. , If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our disclaimer as well as our terms and conditions and privacy policy. No fiduciary obligation or duty exists, or is created, by virtue of your receipt of any information provided in connection with Investment Club. No specific results or benefits are guaranteed.
A view of the Apple Store at Festival Walk shopping mall in Mong Kok district on August 15, 2018 in Hong Kong, Hong Kong.
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Investors shouldn’t be put off by the Big Tech name given the continued selloff in shares of Apple (AAPL) on speculation of a Chinese crackdown on iPhone use among government employees.
Source: www.cnbc.com
