The pullback in Apple following Monday’s Worldwide Developers Conference keynote does not shake our conviction in the stock. But we’re not rushing to buy the dip either. “We’re not going to trade Apple. That’s an own-don’t-trade [stock],” Jim Cramer said during CNBC Investing Club’s Morning Meeting on Tuesday. He also cautioned investors from viewing the decline as a buying opportunity, given its recent rally, noting that “you cannot call the bottom here.” Apple shares were down another 3% on Tuesday, adding to the prior session’s near 2% decline. The stock had been about 3% higher right before the expected WWDC announcement of the new AI-enhanced Siri. By the end of the event, it reversed lower and stayed that way into Monday’s close. Shares had been on a tear coming into the event — up 28% from March 30 to June 2 record high close of $315 — as investors anticipated Apple’s next moves in artificial intelligence. In our view, the sell-off says more about investor expectations than Apple’s long-term prospects. Apple’s developer conferences have a history of becoming “sell the news” events, particularly when traders bid up the stock in advance, hoping for a game-changing announcement. As Jim noted on CNBC’s ” Squawk on the Street, ” Apple has never been a company built around flashy one-time reveals. “One of the things that happens in these, and why they’ve been bad trading events, is that people get all bulled up that they’re going to say something,” he said. “In reality, Apple is an incrementalist. They are not a company that shocks you. They give you things that are better than they were before.” That careful approach is precisely what has allowed Apple to build one of the most loyal customer bases in the technology industry. Despite concerns that Apple’s AI offerings trail its competitors, Jim said the company’s ecosystem — more than 2.5 billion active devices —remains a powerful advantage. It can sell subscriptions and entertainment to those users, as well as services like Apple Pay, iCloud, and AppleCare. “You do not get people going from Apple to Samsung because … Wall Street didn’t get what it wanted,” he said. More importantly, we see a clear path toward monetizing AI as a smarter Siri and enhanced Apple Intelligence features could ultimately drive both device upgrades and higher-margin services revenue. “A more intelligent Siri is going to matter a great deal,” Jim said. That view was echoed by several Wall Street firms following WWDC. Morgan Stanley raised its price target on Apple to $360 from $330, citing a clearer path to monetization through both hardware and services. The firm estimates that more than 850 million iPhones currently in use cannot run basic Apple Intelligence features, creating a sizable opportunity for future upgrades. Melius Research struck a similar tone, arguing that Siri AI and Visual Intelligence could help drive both future iPhone upgrades and recurring services revenue. The firm also highlighted Apple’s large installed base and upcoming product cycle catalysts, including a potential foldable iPhone. For now, patience remains the right approach. The stock needs to settle after its strong rally as investors process the latest announcements. But longer term, we remain positive on the stock, viewing Apple’s expanding AI capabilities as another reason for customers to stay within the ecosystem — and potentially spend more once they’re there. “These are all things people want,” Cramer said. “It’s a service revenue stream that drives the gross margins. And the gross margins will drive the stock. And the next thing you know, buy.” (Jim Cramer’s Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
