Apple Shares Up Sharply After Jim ‘Mad Money’ Cramer Boosts Stock

Jim “Mad Money” Cramer boosted Apple’s stock last night on his CNBC show, and today it’s up 3.83% to $181.87.

Earlier in the day Apple’s stock was $182.72, Apple’s best since August 2008, just before the global economic meltdown.

This is the same Jim Cramer that told The Daily Show‘s Jon Stewart how easy it is to manipulate Apple’s stock. See the video after the jump.

In this case, Cramer seems to be sincere. Cramer pumped the stock on the prospect that changes in accounting rules will realize significantly higher quarterly revenue for Apple. At present, Apple spreads revenue from Apple TV and iPhone sales over 24 months, like a subscription. If new accounting rules come into effect, Apple will be able to report this revenue immediately.

As a result, Cramer estimates that Apple’s 2011 earnings will likely jump from $9 to $12 per share.

“I’m raising my price target on Apple,” he said during the show. He raised his price target for Apple stock from $200 to $264.

Some analysts, like the Yankee Group’s Carl Howe, have said for a long time that Apple’s subscription revenues aren’t being accounted for properly by Wall Street.

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Cha-Ching! Accounting Rule Change Will Boost Apple’s Bottom Line

The Financial Services Accounting Board is reviewing a draft rule change after strong lobbying from Apple. The new rules are likely to come into effect in weeks.

Cramer told investors to act fast before the big funds got wise. Looks like it’s too late now.

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