Cramer: Apple's Device-Loving Users Explain its Valuation Premium
Jim Cramer recently praised Tim Cook's tenure at Apple, calling him a rare CEO who has built a company where people treat its products as personal companions rather than just consumer electronics. This philosophy sets Apple apart from every other hardware company and explains the valuation premium it enjoys on Wall Street.
Cook will step down as CEO in September, handing over the reins to John Ternus, but his legacy is secure. During his tenure, Apple's stock increased by roughly 1,900%, reflecting both operational discipline and the durable consumer relationships Cramer described. Cook's philosophy is reflected in the company's financial results, including a record revenue of $109.42 billion in Q3 2026.
Apple's installed base has also grown to an all-time high of over 2.5 billion devices, generating significant recurring revenue through its Services flywheel. This emotional attachment, rather than contractual stickiness, is what drives Apple's premium valuation multiples, currently at a trailing P/E of 35x and a forward P/E of 34.87x.