Shares traded mixed on Monday amid uncertainty over the Biden government’s stimulus plans and as investors prepared for a week of tech gains including Apple and T.
Katherine Ross and Jim Cramer from TheStreet discussed the latest stock market news. Cramer spoke Monday about Apple and GameStop trading and markets.
Apple: buy or sell?
Tech giant Apple (AAPL) – Request report received a price upgrade from Wedbush analyst Dan Ives on Monday as he expects the iPhone maker to release robust results this week.
Ives said Apple’s “iPhone 12 supercycle hype has become a reality” led by Asia. Ives increased his iPhone 12 sales forecast by 35% to over 90 million.
Cramer said analysts raise expectations for Apple to the extent that Apple, CEO, Tim Cook, sometimes fails to meet those expectations. “It helps that there is a president who has not directly challenged President Xi. It is entirely possible that in China you will see people who own Apple phones and there is also a shortage of Huawei.”
GameStop: buy or sell?
Shares of GameStop (GME) – Request report increased as the conflict between retail investors and short-sellers over the loss-making video game retailer continued.
Last week, Andrew Left, managing partner of short-seller Citron, said he was leaving the stock due to bull harassment.
Cramer said there are people on WallStreetBets who have found out about the short positions [on stocks] are not in accordance with what could happen. To Ryan Cohen of RC Ventures [and the founder of Chewy] got to the GameStop board last week, he made people feel like GameStop might be making a way back. It closed at an all-time high last week in an effort to “ squeeze ” short-selling Citron Research, which bet against GameStop stocks on Jan. 19. People have bought the stock at levels no one ever imagined. “
Markets on Mondays
Cramer said investors could trade growth for value. “I didn’t like this rotation because I’m always afraid that the animal spirits at the beginning of the year are raising people for value, which is therefore too high. That could happen. In the meantime, growth stocks, that’s pretty much tech and healthcare are back. I see an amazing transition from the value stocks to technology and healthcare, not much further. “
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