In the last season of earnings, in late October 2021, Jim Cramer was determined: after looking at the financial performance of each company, he found that Apple shares (AAPL) – Download the report from Apple Inc. would be a better choice than Amazon (AMZN) – Download report from Amazon.com, Inc..
Below I explain why he was right for the best performer so far. Then I talk about whether AAPL shares will continue to outperform in 2022.
(Read more from Apple Mavena: Apple stocks: this will prove to be a buying opportunity)
Jim Cramer on the AAPL against AMZN
During a panel on CNBC, the head of Mad Money indicated that, in the face of Big Tech, he would rather hold shares in the Cupertino company than the shares of his colleagues:
“Apple is much better than Amazon. Amazon has become structurally too big to deliver what Prime does at no cost. ”
Since that day, the AAPL has surpassed AMZN considerably: 10 percentage points in less than three months, as shown in the chart below.
Jim Cramer was obviously right about his preferences. Interestingly, however, Amazon shares were better off almost a month after the interview, suggesting that third-quarter earnings week isn’t exactly why the market deteriorated at AMZN and excited about AAPL later in the fourth quarter.
As I said about a month ago, Apple has recovered strongly to briefly reach a $ 3 trillion market capitalization starting in mid-November. The most likely reasons for the increase were (1) the excitement of the 2022-2025 growth potential in the metaverse and autonomous vehicles, and (2) the strength of consensus in the iPhone segment through the holiday season and beyond.
How about 2022?
Recently, Jim Cramer re-entered the mega-cap technology space. It is clear that he still sees the growth of Apple shares at the beginning of the new year.
In fact, the famous investor listed AAPL as the top 5 legacy technology stocks it will own in 2022 – though I bet some Apple investors would question the term “legacy” here. According to Jim, the attractiveness of these companies in an environment of rising rates is as follows:
“While most software stocks in the cloud that are losing money are now out of bounds, there are many technology names that do real things and make real profits.”
Cramer backed his bullish stance toward Apple not only on his broader views summarized above, but also on the small window of opportunity revealed by the sale in early January. He also expressed confidence that demand will strengthen with the end of the supply chain crisis.
What do you say to AMZN?
The same arguments can be used to support the purchase of Amazon shares: “real things and real profits”; normalization of demand as supply bottlenecks are addressed; and lower valuation – in the case of AMZN, the shares have not recorded all-time highs since July 2021.
For these reasons, I still think AMZN will surpass the AAPL in 2022, even though the latter has already won the pedestrian race in early January (see below).
However, that doesn’t mean I wouldn’t own Apple shares at the current level. In fact, I think both big tech names will continue to make lavish market gains in the long run.
Jim Cramer was right when Apple said it was a better choice than Amazon after its third-quarter earnings season. Do you think this is still the case, ahead of earnings in Q4?
(Read more from Apple Maven: Apple Stock: Be careful with big technology in 2022, says this expert)
(Disclaimer: This is not investment advice. The author may have owed one or more shares mentioned in this report. Also, the article may contain affiliate links. These partnerships do not affect editorial content. Thanks to Apple Maven for support)
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