Cramer says investors are 'misjudging entirely' Apple's strong quarterly results. Here's why

Published Thu, Apr 29 202111:09 AM EDTUpdated Thu, Apr 29 20214:47 PM EDT

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

CNBC's Jim Cramer said Thursday he was blown away by Apple's latest quarterly earnings report, adding he thought the more than 2% premarket stock increase was too muted. Shortly after the opening bell on Wall Street, Apple shares were up only fractionally and later even gave up those gains. The stock closed Thursday's session basically flat at $133.48 per share. "Apple, I think, people are misjudging entirely. I think Apple was an extraordinary share take. I think Apple was an amazing move in services," Cramer said on "Squawk on the Street." "Goldman, the bear, had to throw in the towel" after Apple's results, the "Mad Money" host said, in reference to Goldman Sachs Apple analyst Rod Hall upgrading the stock to neutral , about a year after downgrading it to a sell. Apple's revenue for its fiscal second quarter soared nearly 54% from the year-ago period to $89.58 billion, far better than analysts' expectations. Per-share earnings of $1.40 topped forecasts of $0.99. Sales for its Mac computer and iPad segments rose more than 70% and nearly 79%, respectively. "I cannot believe that you could have Mac and iPad do incredibly well, that you could do amazing in Europe," Cramer said, reacting to Apple's quarterly sales in Europe rising almost 56%. "I thought Europe is closed [due to Covid restrictions], but, of course, what we found is they sell so much direct to consumer. That's another great story." "There are so many great stories, so many superlatives," he said. Cramer said if he had to find something negative with the results, it would be Apple's wearables segment, which reported year-over-year sales growth but not the "blowout" that he expected. "It's like, 'I'm not happy with the [Apple] Watch. Not everybody in the world bought the Watch this quarter," he quipped. In addition to Apple's report late Wednesday, Facebook also issued quarterly results after the bell that surpassed Wall Street expectations. The social media giant saw a 48% year-over-year increase in quarterly revenue . On Tuesday, Google parent Alphabet and Microsoft also turned in strong results for their latest quarters. Amazon and Twitter were on deck for Thursday evening. While there have been other impressive corporate earnings results recently, Cramer said the trio of tech giants — Apple, Facebook and Alphabet — posted "pantheon quarters." He added later, "I'm out of superlatives." Looking ahead, Apple CFO Luca Maestri said on the company's conference call that it's experiencing some supply challenges related to the global chip shortage. Cramer said he was glad that management discussed it but that his level of concern for Apple was lower than with other companies due to its sourcing strategy. "I am less worried about Apple than I am, say, Ford ," Cramer said.

A large advertisement on the LED screen outside the apple store is to warm up the iPhone 12 series, which is officially on sale on the 23rd. Shanghai, China, October 21, 2020.

Barcroft Media | Getty Images

CNBC's Jim Cramer said Thursday he was blown away by Apple's latest quarterly earnings report, adding he thought the more than 2% premarket stock increase was too muted.

Shortly after the opening bell on Wall Street, Apple shares were up only fractionally and later even gave up those gains. The stock closed Thursday's session basically flat at $133.48 per share.

"Apple, I think, people are misjudging entirely. I think Apple was an extraordinary share take. I think Apple was an amazing move in services," Cramer said on "Squawk on the Street."

"Goldman, the bear, had to throw in the towel" after Apple's results, the "Mad Money" host said, in reference to Goldman Sachs Apple analyst Rod Hall upgrading the stock to neutral, about a year after downgrading it to a sell.