Jim Cramer Goes Against Amazon, Downgrades Apple

CNBC’s Jim Cramer told investors not to get caught up in downgrades or general trades on Wall Street, reiterating his position that there is merit in sticking with strong companies even as their stock prices fluctuate.

“When I look at the history of this incredible market — and it’s been an incredible market — it’s full of ‘buy to hold, hold to sell, buy to hold, hold to sell,’ these downgrades that scare you out of stocks amazing at levels that may be temporarily too high, but will recover later,” he said. “If you listen to the relegations, though, you’ll never recover.”

Cramer said he had a “ridiculous plethora of sell-side downgrades” on Monday, where Dow Jones Industrial Average decreased by 0.94%, the S&P 500 decreased by 0.96% and the Nasdaq Composite decreased by 1.18%. He acknowledged that the session was weak, but said that considering too many downgrades can be harmful for long-term market investors.

Although he admitted that Amazon faces some obstacles, he disagreed with Wells Fargo’s downgrade of the stock. He said the megacap has faced obstacles before and bounced back, saying it’s only a matter of time before that happens. He noted that the stock has recovered from a substantial drop in early August when the company reported a revenue miss.

Cramer also disagreed with Jeffries’ demotion Apple. While he said the company may face some short-term headwinds with the iPhone16 launch, he maintained that the company does not have a track record of launching bad products. He continued, saying the downgrade was “betting against Apple’s entire culture of excellence.”

“Wall Street is addicted to trade,” Cramer said. “But if you’re managing your own money, you shouldn’t be listening to all this trading advice. You can’t afford to do what they want you to do because trading is a full-time job.”

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Disclaimer CNBC Investing Club Charitable Trust owns shares of Amazon and Apple.