Mad Money host calls for $300 AAPL price target
updated 11:05 am EDT, Wed October 21, 2009
TV segment may be fueling Apple stock
The host of CNBC's Mad Money, Jim Cramer, has called for an Apple stock price target of $300. In a recent episode of the program Cramer comments on Apple's fourth-quarter results, citing them as a reason for buying Apple stock despite it already being very expensive, hovering close to $200. Apple allegedly revealed in its results call that it is having a hard time keeping up with demand, not only in terms of the iPhone 3GS but many of its products, including Macs. Such a problem is a good one to have, Cramer suggests.
The host also remarks that the company has plenty of room for increasing iPhone sales, with only 3 percent of the market, and that it could come to dominate the smartphone industry in the same way it controls music players with the iPod. The company may further be poised to take home more computer sales, as it is a minority player but still doing damage to majority companies like Dell. Apple stock could climb as high as $390, Cramer argues, but a $300 figure is thought to be more plausible.
Critics of Cramer note that Apple has only admitted to 3GS supply problems, and that a week ago, the host was pessimistic about short-term Apple prospects. Analysts were likely to be disappointed by Q4 results because of a problem with iPhone production, he proposed, though the resulting stock drop was expected to be an opportunity to buy.
The latest Mad Money episode may nevertheless be helping to boost Apple stock, which surpassed the $200 mark on Tuesday. As of this writing the stock is valued over $205, an all-time high.
and...
10/21, 11:13am reply
he said Bear Stearns and Merrill Lynch were great places to put your money...
testudo
Fresh-Faced Recruit
Joined: Aug 2001
insane
10/21, 11:38am (1 reply) reply
I love Apple's products, but there's just not enough in the company's finances to justify a $270B market cap. These stock pickers forget that this isn't just about guessing the market, it's about the correct valuation of a company. I don't think it's an accident that many of these investor tip sheets are very similar in style and content to the Daily Racing Form.
f1rehead
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Joined: Nov 2006
Ask Jon Stewart
10/21, 11:49am reply
Since Cramer described his own show as "entertainment" when he tried to defend himself on Jon Stewart's "The Daily Show", surely no one takes him seriously?
Feathers
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Joined: Oct 1999
jumping the shark
10/21, 11:57am reply
The time to exist is near. Re-entry? We'll find out.
Paul Huang
Forum Regular
Joined: Sep 1999
Poisoned Chalice?
10/21, 12:03pm reply
Remember how Microsoft's backing of HD-DVD effectively poisoned the chalice and made the technology a non-runner for other companies. Might Cramer's "endorsement" of Apple do the same? He is working for NBC-Universal after all and their history with Apple and iTunes hasn't exactly been convivial.
Feathers
Forum Regular
Joined: Oct 1999
s**** you Cramer
10/21, 12:11pm reply
I wish this ignorant, wait, wrong word. I wish this bought and paid for telemarketer-c**-stock-killer would forget Apple even exists. It has been proven by several people that doing the exact opposite to what Cramer has suggested over the years would have yielded better results. And as @Feathers said, he has described his show as entertainment.
MyRightEye
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Joined: Apr 2008
If he says Buy
10/21, 12:13pm reply
Then its time to sell... but thanks for the boost! I was ready to sell yesterday and now with extra attention the stock keeps going up... maybe I'll hold on just a little longer... oh this rollercoaster!!
byRyan
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Joined: Jun 2007
he loves to manipulate AAPL
10/21, 01:25pm reply
This guy has balls the size of a house. Remember that clip on The Daily Show where Cramer was talking about how much he loved manipulating AAPL's price?
What a freakin' tool.
climacs
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Joined: Sep 2001
@Paul Huang
10/21, 01:29pm reply
AAPL may well be overpriced, but a wise man once said that the market's ability to be irrational can far outlast your bank account (or something like that...).
Would you want to be the guy who sells AAPL at $210, only to watch it continue to climb to $250???
I'm standing pat... even if AAPL is $20 or so overpriced, in a short time it can regain that or more. If you want to try to time the market... be my guest. I won't do it, not with a stock as volatile as this one. We could still be in for a h*** of a runup before it cools off.
(I think part of what is driving AAPL is that it is one of the few stocks showing solid growth, so more people keep buying it...)
climacs
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Joined: Sep 2001
Re: @Paul Huang
10/21, 03:23pm reply
Would you want to be the guy who sells AAPL at $210, only to watch it continue to climb to $250???
Rather than than be the guy who buys at $210 only to see it drop back to $180 or below.
And, BTW, it's that philosophy that has helped drive the wall street boom, and drive it into a bust of fraud and scams. People were no longer are afraid of losing money. They were afraid of not being in on making all that money others said they were making.
testudo
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Joined: Aug 2001