The shares were traded mixed on Monday amid uncertainty over the Biden government’s stimulus plans and as investors prepared for a week full of tech profits, including Apple and T.
TheStreet’s Katherine Ross and Jim Cramer discussed the latest stock market news. Cramer talked about how to trade Apple and GameStop and markets on Monday.
Apple: buy or sell?
Tech giant apple (AAPL) – Get report on Monday, it received a price update from Wedbush analyst Dan Ives, who expects the iPhone maker to publish robust results this week.
Ives said the “success of the iPhone 12 super cycle has become a reality” led by Asia. Ives increased his iPhone 12 sales forecast by 35% to more than 90 million.
Cramer said that analysts have raised expectations about Apple to the point that Apple, CEO Tim Cook, sometimes fails to meet them. “It helps that there is a president who did not directly challenge President Xi. It is perfectly possible that you see people owning Apple phones in China and there is also a shortage of Huawei.”
GameStop: buy or sell?
GameStop Actions (GME) – Get report it increased as the conflict between retail investors and short sellers over the deficient video game retailer continued.
Last week, Andrew Left, managing partner of the short-selling Citron, said he was abandoning the stock because of bull harassment.
Cramer said there are people on WallStreetBets who have discovered that short positions [on stocks] are out of alignment with what could happen. “After Ryan Cohen of RC Ventures [and the founder of Chewy] joined the GameStop board last week, he made people feel that maybe GameStop will make its way back. He closed on a record last week entirely in an effort to ‘squeeze’ Citron Research, which bet against GameStop’s shares on Jan. 19. People bought shares at levels that no one ever imagined. “
Markets on Monday
Cramer said investors can trade from growth to value. “I did not like this rotation because, at the beginning of the year, I always fear that animal spirits will make people raise numbers by value, which is therefore too high. This can happen. In the meantime, the stock goes up, which is very technology and health, they are back. I am witnessing an incredible real-time transition from actions of value to technology and health, not much beyond that. “
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