Jim Cramer on Apple and Amazon earnings: Everyone got fooled by the supply chain

CNBC's Jim Cramer breaks down the latest quarterly earnings from Apple and Amazon, which fell short of Wall Street's expectations. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi

CNBC’s Jim Cramer reacted Thursday to the disappointing quarterly results from Apple and Amazon, suggesting the issues the companies faced do not alter the long-term investment thesis.

Shares of both Apple and Amazon were down more than 3% in after-hours trading as investors digested the quarterly numbers.

Apple’s earnings per share were in line with Wall Street estimates, but the iPhone maker’s sales of $83.36 billion were lighter than the expected $84.85 billion.

Amazon missed on both the top and bottom lines, while also dolling out weaker-than-expected fourth-quarter guidance.

Here are the “Mad Money” host’s takes on the numbers:

Apple

“With Apple, the problems are obviously temporary,” Cramer said, noting that CEO Tim Cook told him the company estimates supply constraints cost it around $6 billion in the quarter.

While Cook said Apple is seeing some improvements around semiconductor availability, Cramer said the CEO warned the company’s ability to meet demand may get worse “before it gets better” in the current quarter.

“You know my position on Apple: Own it, don’t trade it. That hasn’t changed. Supply shortages will be cured, we just don’t know when,” Cramer said. “If it was demand [slowdowns], the conversation would be quite different.”

Amazon

“In the end, I think the problems here are temporary too, just like with Apple,” Cramer said, highlighting the fact Amazon’s e-commerce operations faced multiple headwinds, including shortages related to broader supply chain issues, as well as rising transportation costs.

“On top of that their retail business is decelerating, in part because it’s up against some very difficult comparisons,” Cramer said. “Management’s guidance wasn’t great, either. However, the Amazon Web Services business is on fire.”

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast

Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/

#CNBC
#CNBCTV