Apple Inc. (AAPL): People Are Tired Of The Stock Buybacks, Says Jim Cramer
Cramer continues to be one of Apple Inc. (NASDAQ:AAPL)'s strongest proponents even though the firm's shares have lost 12.6% year-to-date. The stock has struggled due to trade tensions between the US and China that have threatened to disrupt the supply chain, the firm's struggle to convince the market about its presence in the AI market, and concerns about slow iPhone sales. However, the CNBC host believes that Apple Inc. (NASDAQ:AAPL) will maintain its stature as long as the firm holds its high-end smartphone market share. This time around, he criticized Apple Inc. (NASDAQ:AAPL)'s stock buybacks and deemed them inadequate:
'[On reports of Apple reportedly looking to rely on third party AI] Look at how the stock reacted. Because people are tired of Apple just saying, you know what we're gonna do, we're gonna buy back stock until we get something better. No. I mean that's not what you can do anymore.
A wide view of an Apple store, showing the range of products the company offers.
Cramer commented on Apple Inc. (NASDAQ:AAPL)'s woes in detail recently. Here is what he said:
'. . .Apple, which cannot get out of its own way. And I think probably could go down to 25 times earnings. Which is a substantial decline. Apple's a share donor. It's a share donor.
'[On why Apple stock should be bought] No I'm not going to because I think the multiple's too high.
While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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