Shares of Apple are down, no they're up. It appears the Street doesn't know what to do with Apple in the wake of its earnings.
Fortunately Cramer does.
Looking at the headline numbers, Apple posted fourth-quarter earnings of $8.26/share; analysts had expected $7.96/share according to Thomson Reuters. Revenue increased to $37.5 billion from $35.97 billion a year ago.
Those metrics look impressive. But when they first crossed the tape, pros ran for the exits.
The Mad Money host explained that the after hours selling in Apple stemmed from the way the Street interpreted margins.
Specifically, the company said gross profit margin fell to 37% in the quarter, down from 40% in the same period last year. Margins have fallen on an annual basis for seven straight quarters.
"Over the past few weeks, pros began to get more bullish about the company's prospects. A lot more bullish. Going into the quarter, analysts were raising their estimates left and right," Cramer said.
Bears were betting the declining margins would ultimately call the whole thesis into question.