In the wake of the United States Department of Justice’s (DOJ) recent antitrust lawsuit against Apple Inc., CNBC’s Jim Cramer remains steadfast in endorsing the tech giant’s stock as a sound investment.
Cramer, in a CNBC report published on Thursday, expressed that the DOJ’s legal action against Apple does not weaken the company’s investment appeal. He equated the situation to multiple instances wherein analysts have downgraded Apple’s stock from buy to hold, inadvertently creating further buying opportunities.
The DOJ charged Apple on Thursday with maintaining a “smartphone monopoly” via its iPhone, alleging that the company makes it difficult and expensive for users and developers to leave its ecosystem. The lawsuit implicated Apple’s smartphone and Apple Watch businesses as well as its advertising, browser, FaceTime, and news operations.
Cramer, however, believes that the DOJ lacks substantial proof to establish Apple’s wrongdoing. He contrasted this case with the government’s previous antitrust lawsuit against Microsoft, where the latter held a substantial global market share. According to Cramer, this is not true for Apple. He views this lawsuit as another buying opportunity for the stock.
Despite the lawsuit, Apple’s shares were down slightly more than 4% at the close.
“I just got a whole brand spanking new reason to buy Apple, don’t trade it,” Cramer said. “I know a loser case when I see one, and the United States of America versus Apple is a loser.”
The lawsuit, which Apple has described as “threatening” to its core principles and innovation ability, could potentially challenge the company’s business model. According to a leading analyst’s note, the case’s outcome could determine what lies ahead for the tech powerhouse. Despite the looming legal battle, Cramer’s unwavering support for the stock provides some assurance for investors.
In conclusion, despite the legal challenges Apple is facing, Jim Cramer continues to believe in the stock’s potential as a solid investment. Investors will be closely watching how the lawsuit unfolds and its impact on Apple’s future business operations.
