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Apple CEO Tim Cook Ends Stock Slide With Reassuring TV Appearance

Apple CEO Tim Cook speaks with CNBC’s Jim Cramer on Monday. (Adam Jeffery/CNBC)

Apple (AAPL) stock rose Tuesday, a day after CEO Tim Cook appeared on CNBC's "Mad Money" to discuss the company's prospects after last week's disappointing March-quarter earnings report.

Apple shares rose 1.6% to 95.18 on the stock market today. Before Tuesday, the stock had fallen for eight straight trading sessions, tying its record losing streak. Apple stock has never had nine straight down days, but it has had four eight-day slumps, Bloomberg reported. The last time Apple had eight straight down days was in July 1998, a month before recently returned CEO Steve Jobs introduced the all-in-one iMac computer, the first in a line of hit products that fueled the company's comeback from near bankruptcy.

Cook told "Mad Money" host Jim Cramer that the downturn in Apple shares was a "huge overreaction" to the company's fiscal Q2 report on April 26.

“We just had an incredible quarter by absolute standards, $50 billion-plus in revenues and $10 billion in profits,” Cook said. “To put that in perspective, the $10 billion is more than any other company makes. So it was a pretty good quarter, but not up to the Street’s expectations clearly.”

Cook acknowledged that iPhone owners are taking longer to upgrade their handsets. The company is facing difficult comparisons to the hugely popular iPhone 6 series, as well as difficult macroeconomic conditions, he said.

The smartphone market still holds a lot of opportunity for Apple, especially in emerging markets like India, he said.

IPhone In Line For 'Great Innovation'

Cook hinted at “great innovation” coming in future iPhones that will entice people to upgrade.

“We are going to give you things that you can’t live without, that you just don’t know you need today,” Cook said.

Cook also talked up Apple’s fast-growing services business, including the App Store, Apple Music and Apple Pay.

Cook said concerns about Apple’s prospects in China are overblown. Smartphone sales have slowed there, but Apple is seeing a big increase in switchers from Android phones. Plus, its recently launched iPhone SE, a lower-priced 4-inch smartphone, is selling well, he said.

“I could not be more optimistic about China,” Cook said. “I think the long-term thesis is intact.”

Cook made veiled comments about upcoming new products that Apple is developing.

“We’re fairly secretive. We don’t talk about products that are in the road map,” Cook said. “But I would tell you that we’re incredibly excited about things we’re working on. Incredibly excited. And so I don’t want to be more specific than that.”

Sterne Agee CRT analyst Rob Cihra on Tuesday reiterated his buy rating on Apple stock with a price target of 135, despite the company’s challenges in China.

“China flipped from Apple’s biggest tailwind to headwind last quarter,” he said in a research report. “Yet we do not see China’s slowdown as Apple-specific nor competitive.”

Apple is facing difficult comparisons to huge growth from the iPhone 6 launch in China, especially from leading wireless carrier China Mobile (CHL), Cihra said.

Apple’s sales in China fell 26% year over year in the March quarter.

“The math hurts, as China accounted for 26% of revenue in calendar year 2015 and was responsible for 43% of Apple’s entire growth calendar years 2011-2015.”

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