Investors should own Apple's stock rather than sell, CNBC's JIm Cramer said Wednesday, a day after the tech giant posted record quarterly profits in part because of its strong performance in China.
"This is a mesmerizing quarter," Cramer said on "Squawk on the Street." "This was a fabulous China quarter. They seem to like the iPhones different from what Steve Jobs said they would; they seem to like the big phones."
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On Tuesday, the company obliterated Wall Street's fourth-quarter expectations by posting earnings per share of $3.06 on about $75 billion revenue, both records. The Street expected Apple to post earnings per share of $2.60 per share on $67.69 billion in revenue, according to a consensus estimate from Thomson Reuters. The company's $18 billion quarterly profit was a record for any publicly traded company.
The company's stock rose more than 8 percent Wednesday morning. (Click here for the latest price.)
The company's expansion in China can also help it keep its momentum, Cramer said. "The China thing amazed me when I saw how few stores they have," he said. "They could probably use 1,000 stores in China. The online business is [also] incredible in China. "
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Apple is expected to expand to 40 stores in China by mid-2016. about double its current number.
Cramer also said he believes the Apple Watch will be a big success. "[Tim Cook] said 'I can't live without it,'" Cramer said. "[Cook's] credibility is the highest of any CEO right now, so if he says he can't live without the watch ... I'm getting the watch."
The company is expected to start shipping the Apple Watch in April.
Disclosure: Cramer's charitable trust owned Apple stock when this article was published.
CORRECTION: An earlier version misstated the number of Apple stores in China. Apple's website lists 15.