CNBC’s ‘Mad Money’ host Jim Cramer has raised a red flag for Apple Inc. (AAPL), labeling it the most vulnerable among the ‘Magnificent 7’ tech giants. This caution comes ahead of the highly anticipated iPhone 16 launch, an event that Cramer believes could be a crucial test for Apple’s stock performance.
In a recent note, Cramer expressed concerns about the valuation of the top seven tech companies, including Apple. He argues that despite recent sell-offs, these stocks remain overvalued, with investors seemingly ignoring price in their buying decisions. Cramer emphasizes that the iPhone 16 launch could be a make-or-break moment for Apple, especially considering the increasing competition within the smartphone market.
Adding to the uncertainty, Apple’s June announcement about partnering with OpenAI to integrate ChatGPT into its devices has created high expectations. However, Cramer remains cautious, suggesting that these developments may not translate into guaranteed stock gains.
The upcoming iPhone 16 launch, nicknamed the ‘Glowtime’ event, is generating significant buzz. Apple has been at the forefront of tech news, and the event is expected to showcase significant upgrades, including OLED displays. But the competitive landscape is intensifying, with Huawei making unexpected moves that could potentially impact Apple’s market share.
Analysts hold mixed opinions on Apple’s post-event stock performance. Some believe the iPhone 16 launch could propel the stock higher, while others, like Cramer, remain skeptical. One analyst recently suggested that the event may not be a ‘sell the news’ moment, indicating that Apple’s shares could continue to rise. However, recent polls reveal that investors are exploring other options within the ‘Magnificent 7’ for retirement investments, with Amazon.com emerging as a top choice over Apple. This shift in investor sentiment could potentially impact Apple’s stock performance.
