Squawk on the Street

Cramer's Morning Take: Apple 8/27/24

Jim and Jeff break down the Apple CFO shake-up. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake CNBC Investing Club Disclaimer

Broadcast on:: 27 Aug 2024
Audio Format:: other

CNBC Investing Club Disclaimer

In Colorado, our freedoms are everything. Gabe Evans would rip them away. Just like Lauren Boebert, he'd ban abortion without exceptions for rape or incest, and overturn the right to marry for same-sex couples. Don't let him take our freedoms. Paid for by DCCC, www.dccc.org, not authorized by any candidate or candidate's committee. What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialized across asset classes, but united in collaboration. Our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. I'm Jim Kramer, and you're about to hear a sample taken directly from today's CMC Investing Club morning meeting. We have a very interesting day developing. Yields have gone up a little bit. What people are doing is that when you have yields up, that makes it so that the companies that you may have been buying with Kimberly Clark, with a higher dividend, become less attractive. The money is actually going to flow back because it's so fungible, maybe into some tech, or at least the tech selling will be the bit. The reason why I mention this is because if you watch the stock of Apple, it's telling the tale. Especially because there were some negative news around Apple yesterday, the long time, CFO, Luca Mistry, stepping down. Morgan Stanley points out he, during his tenure, EPS, 8% growth, 15% growth compounded since he took over as CFOs. These are just extraordinary numbers, helped grow the services business from less than $20 billion annually in fiscal year '14 to $93.5 billion. Hand me my back and hand me a little bit very effectively. He's been great. If there was stock for sale, a mountain of stock for sale, he came in and bid most of these CFOs just say every day I want to buy 100,000 shares. That's stupid. He never played that. That's a game, which that means that you just don't want to even think about it. He thought about stock prices. And he's staying with the company, I think. Yes, he is, but the CFO has officially changed. Sure. But a deep bench, I'd argue, at Apple, I mean they attract some of the absolute in the world. So I would think they're in good hands. I'm going to reference Morgan Stanley again. They said they've been impressed with the incoming CFO in some of their limited interactions. And maybe a little bit of a surprise that the stock's higher right now. Well, I mean, right here when they reported the quarter, what he said was, "Look, we're going to buy a lot more, a little more aggressively." People didn't see that initially. Yeah. I don't know why they didn't. And then you also have the anticipation, September 9. That's talking about the iPhone announcement day. That is historically what people do is once they see it, then a whole 'nother round of programs are written for. Now, I don't know if you've been aware of the battery life issue, but we need to see how much battery life there is. Because a lot of people will trade up if they just can have a battery that lasts for a day. Well, I think, too, it's also going to be about Apple intelligence. When is it going to be available in the new software? There were some signs that maybe it might be like in early 2025, but the new phones and also some of the higher-end prior models of the 15, they will have the capability to run their AI software. Look, I think that this is Apple should have been down to it. Luca is a serious player. My foot to stock will be nicked for a buck and a half day. I came in, it was down to buck them three quarters. This move up is, again, signifying either the interest rates are going to stabilize right here, because, remember, interest rates can't go higher without everything being hurt, or the money, the flow-back, the flow-back after what happened yesterday. Start your day with my Apple on the daily market every morning at 10.20am. Visit cmbc.com/morningtake to access all the benefits of being a CNBC Investing Club member. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC Investing Club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet, or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC Investing Club are not an attempt to induce any particular trading behavior, investment, or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. To view the full CNBC Investing Club disclaimer, please visit cmbc.com/investingclubdisclaimer. In Colorado, our freedoms are everything. Gabe Evans would rip them away. Just like Lauren Boebert, he'd ban abortion without exceptions for rape or incest and overturn the right to marry for same-sex couples. Don't let him take our freedoms. Paid for by DCCC, www.dccc.org, not authorized by any candidate or candidate's committee. committee.