Jim Cramer says he feels better about Apple's China exposure after Nike earnings

Published Fri, Jun 25 202110:54 AM EDTUpdated Fri, Jun 25 202111:26 AM EDT

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

CNBC's Jim Cramer indicated Friday he's feeling more comfortable about the geopolitical risks facing U.S. companies with important exposure to China such as Apple and Tesla . Cramer pointed to a pair of developments Thursday evening that altered his present outlook: comments from Nike management on its earnings conference call and remarks from Starbucks CEO Kevin Johnson on "Mad Money." "This is ... a clarion call for Apple; they make things there. If it's good for Nike, good for Starbucks, it's going to be good for Apple," Cramer said on "Squawk Box." While Nike's sales in Greater China were up just 17% in its fiscal fourth quarter, which ended May 31, CFO Matt Friend said on the conference call that the company saw improvements in May and June after a weaker April. Friend also mentioned Nike's 40-year history in the region and said, "We continue to invest in serving consumers with the best products Nike has to offer in locally relevant ways." In late March, Nike began to experience backlash in China for a statement regarding forced labor allegations in the western region of Xinjiang. Citi in April downgraded Nike's stock to neutral from buy , citing China concerns as a key reason. Cramer had previously expressed concerns about geopolitics potentially weighing on Nike. Last week, for example, he said of Nike : "Great story, but not if China stays as important as it's been." Shares of Nike were soaring Friday, rising by more than 13% to touch a new intraday all-time high. Cramer said Johnson also relieved some of his near-term investment concerns surrounding China risk after he interviewed the Starbucks boss on "Mad Money." "We have built Starbucks in China, for China," Johnson told Cramer on Thursday, while also emphasizing the coffee chain's intentions to lead "by example of how we can take care of all stakeholders." Reflecting on that interview and Nike's call on "Squawk on the Street" on Friday, Cramer said: "I think that what happened last night with Nike and with Starbucks was incredible." Cramer said what he took away is "there is no rift between the People's Republic of China government and American companies that build plants there, which means to me one of the big worries about Tesla — whether China would embrace it — [is] off the table." "If I were an Apple analyst, I would say, you know what, I have much greater conviction that Apple is going to have good numbers because they build there," Cramer added. The U.S. is Apple's biggest country for revenue, but mainland China is second, according to FactSet estimates. Cramer said he also feels better now about Skyworks Solutions , which makes semiconductor components. "Skyworks builds there; I would buy Skyworks," he said. Disclosure: Cramer's charitable trust owns shares of Apple.

People wearing face masks walk past an Apple store in Beijing on March 17, 2020 in Beijing, China.

Fred Lee | Getty Images

CNBC's Jim Cramer indicated Friday he's feeling more comfortable about the geopolitical risks facing U.S. companies with important exposure to China such as Apple and Tesla.

Cramer pointed to a pair of developments Thursday evening that altered his present outlook: comments from Nike management on its earnings conference call and remarks from Starbucks CEO Kevin Johnson on "Mad Money."

"This is ... a clarion call for Apple; they make things there. If it's good for Nike, good for Starbucks, it's going to be good for Apple," Cramer said on "Squawk Box."

While Nike's sales in Greater China were up just 17% in its fiscal fourth quarter, which ended May 31, CFO Matt Friend said on the conference call that the company saw improvements in May and June after a weaker April.