Cramer sees an Apple bottom of $120 per share, 16% below Thursday's open

  • Apple, under severe pressure after cutting revenue guidance, could eventually bottom out at $120 per share, CNBC's Jim Cramer predicts.
  • However, Cramer, whose charitable trust owns shares of Apple, says he likes the stock over the long term.

Apple, under severe pressure after cutting its fiscal first-quarter revenue guidance, could eventually bottom out at $120 per share or about 16 percent lower than Thursday's open, CNBC's Jim Cramer predicted.

However, Cramer, whose charitable trust owns shares of Apple, said Thursday on "Squawk on the Street" that he likes the stock over the long term. He's also long warned investors against selling Apple's stock.

Shares of Apple plunged 8.8 percent to $143.98 at Thursday's open on Wall Street after issuing a rare sales warning late Wednesday. The stock had closed before the news at $157.92.

The U.S. tech giant blamed longer upgrade cycles and headwinds in China for lower-than-expected iPhone sales. It now expects fiscal first-quarter revenue to be as much as $9 billion lower than previous projections.

Wall Street analysts, who had been peppering Apple's stock with downgrades in recent months, have been concerned the company would suffer declines in iPhone unit sales over the next couple of years.

In a turbulent year that saw Apple become the first U.S. company to exceed a $1 trillion market value, the stock got crushed with the rest of the market down the stretch to finish 6.7 percent lower in 2018. The market value of Apple at Thursday's open was around $680 million.

Goldman Sachs told clients Wednesday that the iPhone maker will likely have to bring down numbers for the full year. Goldman slashed its 12-month forecast to $140 from $182.