Here’s a Cramer maxim: Don’t assume that one company’s misfortune spells doom for the entire industry. And that goes for any firm, no matter how recognizable the name.
Just think week, both Dell and Nokia reported dismal quarters, blaming competition and waning demand for their products. Given that, you might think Apple’s upcoming report, on July 21, will follow suit – but you’d be wrong.
The problem with Dell and Nokia is that no one wants their products. They can’t announce that to shareholders, so they blame weaker global economies. Apple, on the other hand, can’t seem to keep its shelves stocked. Put simply, Steve Jobs runs a much better company. And that’s why Cramer expects a great earnings report next Tuesday.
“In my opinion, as a grizzled veteran of the markets,” Cramer said, “we will hear that things are bright and sunny where Apple’s sitting.”
He urged viewers to keep this in mind going forward. Don’t let underperformers scare you out of the stocks that work, such as Apple. In fact, Cramer recommended buying AAPL ahead of the report.
Watch the video for Cramer’s call on IBM.
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