The traded shares mixed on Monday amid uncertainty over the Biden administration’s stimulus plans and as investors prepared for a tough week with tech gains, including Apple and T.
Katherine Ross and Jim Cramer from TheStreet discussed the latest news on the stock market. Cramer talked about how to trade Apple and GameStop and the markets on Monday.
Apple: Buy or sell?
The technical giant Apple (AAPL) – Get the report Monday received a price upgrade from Wedbush analyst Dan Ives, as the iPhone maker is expected to post robust results this week.
Ives said that “Apple’s iPhone 12 super hype has become a reality” led by Asia. Ives raised its iPhone 12 sales forecast by 35% to over 90 million.
Cramer said analysts are raising expectations for Apple to the extent that sometimes Apple CEO Tim Cook can’t meet them. “It’s helpful that there is a president who didn’t directly challenge President Xi. It’s entirely possible to see people who own Apple phones in China, and there’s a lack of Huawei.”
GameStop: Buy or sell?
GameStop Actions (GME) – Get the report increased as the conflict between retail investors and short sellers over the video game retailer continued.
Last week, Andrew Left, the executive partner of the short seller Citron, said he was abandoning the stock due to harassment from the bulls.
Cramer said there are people on WallStreetBets who have realized that short positions [on stocks] I’m out of line with what might happen. “After Ryan Cohen of RC Ventures [and the founder of Chewy] joined the GameStop board last week, made people feel that GameStop will probably make its way back. It closed at a record high last week in an effort to “squeeze” Citron Research, which was sold out shortly after, which bet against GameStop shares on January 19th. People bought stocks at levels no one ever believed.
Markets Monday
Cramer said investors could trade in growth and value. “I did not like this rotation because I am always afraid that, at the beginning of the year, animal spirits make people increase numbers for value, which are therefore too high. That could happen. Meanwhile, rising stocks, which is pretty much technological and healthcare, are back. I see an amazing in-flight transition from valuable stocks and technology and healthcare, not much more than that. “
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