Financial analyst Jim Cramer is offering his advice on Appleis stock: Sell now, and buy after Wednesdayis third quarter financial report. Investors may be expecting big news about the iPhone, but Mr. Cramer thinks Apple will focus primarily on earnings, and there wonit be anything special to report, according to TheStreet.com.
iPhone anticipation has helped to ramp up Appleis stock ahead of tomorrowis earnings report, and that could lead to a drop in stock value after the conference call. "We have now had this first-class ramp into earnings," he said. "I donit like ramps into earnings."
Appleis stock began a downward slide on Tuesday morning after AT&T announced that it activated 146,000 iPhones in the first day and a half of availability, indicating that many investors have been equating activations with the number of iPhones sold. The actual number of units sold in those first two days will remain a secret until Appleis Q3 earnings report when the company either offers a firm number, or analysts make an estimate based on the companyis earnings.
When analysts get a hard number from Apple, or extrapolate one from Appleis figures, that could change the rate at which the companyis stock is changing depending on how pleased investors are with the numbers. Unfortunately, the murky figures available today arenit giving investors much to go on.
Mr. Cramer, however, was clear on his position. "I am being abject and adamant: Sell some Apple."
Apple is currently trading at US$139.11, down 4.389 (3.05%).