Apple’s latest model of its Apple Watch, complete with new health features ostensibly targeting the aging population, could be the company’s key to unlocking an even larger customer base, CNBC’s Jim Cramer said Thursday.
“If you get the watch, you’re going to get the phone. That’s the way it works,” the “Mad Money” host said. “Consider the watch as the gateway drug to the whole Apple ecosystem.”
Doubling down on his earlier comments that Apple’s newest devices represented a “breakthrough” for the trillion-dollar company, Cramer applauded the iPhone maker’s transformation into more of a subscription business.
He also noted that until the Sept. 12 launch, many investors seemed to be getting “jaded” about Apple’s product reveals because they didn’t seem to move the stock much anymore.
But its latest keynote made Cramer, a longtime Apple bull, believe even more strongly in the company’s story.
“When you look at the new phone and the new watch, you realize that Apple’s trillion-dollar valuation is indeed deserved,” he said. “In fact, it could be worth a lot more than that if I am right about the revolution that this great company unleashed in yesterday’s product introductions.”
Read more of Cramer’s Apple analysis here.
In a joint venture with tech-forward Japanese conglomerate SoftBank Corp., AeroVironment plans to “pursue the business of 5G and IoT” — the internet of things — “globally,” AeroVironment President and CEO Wahid Nawabi told CNBC on Thursday.
In the initial phases of the project, AeroVironment and SoftBank plan “to develop and demonstrate a stratospheric airplane that is powered 100 percent by solar power, energy,” Nawabi told Cramer in an exclusive interview.
Then, “it’s going to fly on the edge of the atmosphere,” the CEO said. The mission? To bring fifth-generation internet connectivity to the entire world.
“AeroVironment has decades of expertise here. And it’s going to beam 5G IoT connectivity for the 7 billion people around the world,” Nawabi told Cramer. “Think of it, Jim, as a super cell tower up in the stratosphere … providing connectivity for everybody that needs it.”
To read more about and watch Nawabi’s interview, click here.
It all started with a slice and a camera.
At least that’s how Barstool Sports CEO Erika Nardini describes the birth of One Bite, her company’s pizza-reviewing app that has seen a meteoric rise since Barstool Sports founder Dave Portnoy started casually reviewing pizza parlors.
“Dave likes to talk about pizza, so that’s really where it started, where Dave was doing pizza reviews that were getting hundreds of thousands, if not millions, of views,” Nardini told CNBC in a joint “Mad Money” interview with Portnoy on Thursday.
And Portnoy, who founded the privately-held Barstool Sports as a sports-oriented newspaper and has helped grow it into a sprawling, satirical, social-media-savvy sports-and-culture platform, has even bigger dreams for One Bite.
Find out what they are and watch the full interview by clicking here.
But the recent move hasn’t been performance as usual. Typically, railroad stocks tend to rally in sync with the economy, making them good litmus tests for gauging whether the economy is as strong as it seems, Cramer said. This year, however, they stalled, biding time amid report after report of strong economic news.
“The fact that the rails have suddenly caught a bid is not just a big deal for this one industry, it’s a big deal for the entire market,” the “Mad Money” host said. “I think the rails are benefiting from a sense that the trade war will hurt less than many of the experts initially feared.“
What does that mean for investors? Cramer said that even after their recent run, the top four railroad stocks still look cheap, trading for anywhere between 16 and 18 times next year’s earnings estimates.
“The railroad stocks are finally getting the credit they deserve now that Wall Street’s not quite so terrified by the trade war,” he said. “I think they’ve got more room to run and I think that Union Pacific is the best of the bunch.”
Even though he admits to doing it himself, Cramer’s sick of commentators making sports analogies when they talk about the stock market.
“Can we stop it with the sports analogies already? I’m as guilty of this as anyone, but I’ve gotta tell you, I am so tired of hearing that ‘We’re now in the seventh inning of this rally,’ or ‘It’s the fourth quarter of this move for certain,'” he said.
“Repeat after me: the stock market is not a baseball game. There’s no set number of innings. The game never ends, it just changes,” he continued.
So, he called on commentators, analysts, bulls and bears to “lose the analogies” and instead explain what could fuel market moves and what could pose obstacles to them.
“And then you let things play out. No called shots, sound-bites, no YouTube clips, but nothing to freak people out, either,” Cramer said. “In reality, lots of stocks have simply done very well over the long-haul and you would’ve missed out on some massive gains if you listened to the so-called experts who claimed we were in the seventh inning the whole way up.”
In Cramer’s lightning round, he flew through his take on callers’ favorite stocks:
Chevron: “Look, Chevron is a great American company. OK? And it yields almost 4 percent and you’re just going to hold onto it, alright? You’re just going to hold onto it because it’s a very well-run company. But it’s not going to run away. That’s the problem. May I suggest – those who are looking for a little more yield – you should go with BP.”
Gilead Sciences: “It’s real low. It’s real cheap. It’s got some decent drugs in the pipeline. I wouldn’t sell it here, but I do not have any reason to recommend the stock.”
Disclosure: Cramer’s charitable trust owns shares of Apple and BP.
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