Cramer To Apple: Kick The Buyback Addiction - Buy A Brain Instead

Core Viewpoint - Apple Inc. should shift its focus from stock buybacks to investing in innovative AI technologies and talent to enhance its future growth potential [1][2][5] Group 1: Cash Management Strategy - Apple has a $3 trillion market cap and a $110 billion buyback plan, which is seen as a lackluster approach to cash management [2] - The current strategy of buybacks boosts earnings per share (EPS) but does not position Apple as a forward-thinking tech company [2] Group 2: AI Investment Opportunity - Jim Cramer advocates for Apple to acquire cutting-edge AI companies like Perplexity to enhance its technological capabilities [3][4] - Perplexity's technology could significantly improve Siri's performance, making it more competitive against other AI assistants like Alexa [3][4] Group 3: Market Position and Innovation - Cramer believes that acquiring AI talent could help Apple leapfrog competitors like Meta Platforms and Alphabet in the AI sector [4] - There is skepticism regarding Apple's willingness to make bold acquisitions, as its history shows a preference for smaller software updates rather than significant mergers and acquisitions [4][5]