The Stock Market's Biggest Moment is Here

I'll show you what we're doing on this Monday with the majors. We are in the red. A number of headlines today as we said. Apple hitting a new all-time high. Happened uh midm morning. Oil moving higher on those Iran tensions. SK Highix is down sharply. The Korean market was down as as well. Chair Wars is on the hill tomorrow. Earnings are kicking off. We got a big week. And we really headline it though with this Apple move. Um you know it's this new intraday high, the first since June. It shows you the move that this thing has been on. It's a little below that level now. It got up to about 320, I think was the number. >> 320. >> You remember Josh last week said it's going to 400. You you you own the name. You've been uh it's probably >> it's probably been at the top of your list for the that's something that you've been focused on more than anything else and buying more recently than anything else too. Consistently. >> Yeah, it's it's a tactical trade and I've been buying the breakouts when I see them. uh last doing so on Thursday somewhere around $310. Um I I'm going to sit back here and not buy further. I see the near-term momentum is a little bit stretched. That doesn't defeat where I think the long-term target is where Apple continues to be one of the leaders as it relates to the Mac 7. I think Apple and Nvidia is benefiting from a little internal rotation maybe away from memory and semiconductors. I think that's what's unfolding right now. Um, and I think collectively the market continues to exhibit this game of rotation amongst sectors and subindustries to the benefit of the overall index itself. But as it relates to Apple, steady as she goes moving forward. Sit back, let it take a a a breath here because we've had very strong momentum and then after earnings, I'd be interested in buying more. >> Sirat optimism continues to bloom in this name. Target 365 at city. I told you the Josh Brown $400 of of last week. They sue Open AAI. That news comes out Friday after the close. What do you make of the run that this name has had? You could pull the chart back, guys. Look at it over Yeah, there it is. Look at that. Like, you know, year to date. Um, it just had a great move after so many wanted to criticize this company for being behind the the curve on on AI, which of course they were. There's no saying that they were not. Uh but now a belief that they're going to get it right and it's going to lead to a really robust upgrade cycle along with some of the new products they have coming out whether it's the foldable phone or otherwise you underpinned by a robust buyback even in a a period of CEO transition. This stock has looked beyond that and it it has looked through any bit of uncertainty in ways that other companies might not have exhibited in the stock market. You tell me that someone like Tim Cook is going to be leaving in his role as CEO and then the stock is going to hit new all-time highs a few months later. I think some people would have said, "Well, I'm not sure." >> Yeah. And add to that that they basically said, "We're raising prices, right?" I mean, companies said, "We're raising prices. Demand's going to be strong." And I think Scott, one of the things that when you look at the Fab 7 or the other stocks, they're all spending money to grow and going to have negative cash flow. Well, Apple's still got positive cash flow. We'll have support for the stock and the demand for their products just increasing. So this it's like a safe, you know, ship in a in a storm right now where you can kind of >> a spending storm. >> Yeah. In a spending storm where they can actually say, "My our shares are too undervalued. We'll buy them back or we'll actually do something to grow." And I think investors are looking for that. and and also looking for the the the lack of volatility when you can buy an Apple that's proven over cycles that they can innovate and I think as AI comes to them as opposed to them going to AI this is a stock that investors want to hold on to as opposed to kind of taking profits from the others >> okay so so how do we view the mega caps today this nice move they've had money coming out of semis it's found a place in in a lot of the mega caps right Meta had this massive move last week it's down a little bit today put Nvidia in separate category. It's not, you know, thought of as the hyperscaler. The hyperscalers are spending on Nvidia. Uh Amazon's green, Microsoft is green. >> What do you think? >> I'm going to I'm going to bring together two thoughts that we had last week, Scott. One is a lot of these mega cap tech stocks are frankly trading at uh value value territory. Uh I could look at Meta, I could look at Microsoft as two examples of that. And I think this is a time that you have to stay true to your knitting. That's the second thought. these rotations and Joe, you've been all over them for weeks and weeks. These rotations have been coming fast and furious. From semis to software, from large cap to small cap, uh from the market cap weighted uh ETFs to the equally weighted ETFs, pick your style of investing and stick with it. And I do think this is a time when many styles can work. So somebody who's more I'm going to say price aware as opposed to price sensitive like myself, I can find plenty of bargains out there. And the thing that I have to do though is I have to hold them through whatever the volatility is that on a day-to-day basis comes up in terms of the rotation. So if just as an example, I've bought Micron over the past 3 weeks and today I'm not looking right at the second, but it was down about 5% uh earlier this morning. I'm not thinking of getting out of that, I'm not paying too much attention to today's downturn. Uh we got Taiwan semi coming up in ter terms of earnings at the end of the week. That'll be the first look at near-term earnings for the semis and I think Micron's going to do fine over the intermediate to long term. My style of investing is not to get too wrapped up in day-to-day rotations. >> Oh, no. You put your face right in the middle of the uh the volatility on that one. You know what I'm saying? >> Kind of. You ever you ever know me to shy away? >> No. >> Yeah. No. >> It's what enders me to you, I think. But really um rather than just sort of taking a back seat and saying you know this is this thing's gotten a little too volatile. >> Yeah. >> The willingness if not ability to sort of double down on your position which I think you basically did. >> I did >> even in the face of that volatility is noteworthy. >> Well and and also fundamental investors. So, one of the things I've said to you, Scott, I've said to our viewers is I think it's important that pretty soon there's going to be an anniversary of the Chips Act, after which Micron can start to return capital to shareholders. I like that. That's something that I look for in companies that I own. So, that sort of fundamental bait, if you will, has me has me nibbling at it. Although, now it's about a 3% position, so it's more than a nibble. Um, I do think that look, if you're a momentum investor, Joe, you're fabulous at it. Fine. There are opportunities here. What you've done with Apple has been nothing short of genius. >> Don't patronize him. But go ahead. >> What? >> I said don't patronize him. Just go ahead. >> Jim and I are friends. He might patronize. I'll tell him when I think he's wrong. No, but I I'm going to go back to what I said. Stick to your style of investing. If you're a fundamental investor, if you're price aware, maybe a Garp investor, a value investor, there's plenty of opportunities out there. I'm looking at Stephanie, your meta. I mean, how could I not be looking at your meta right now? >> You should be looking at at her for the Nvidia, which is the newest buy, which was the the move that was note so not noteworthy right last week. Yeah. For us. >> Yeah. Because I've never owned it before. So, and I just think the valuation has gotten so attractive at 18 times forward estimates and the company is going to grow revenues something like 80% and mid70s gross margins. Free cash flow is going to double. So, I'm looking for opportunities where I either I have positions and I have more conviction because the valuations have come down. To your point, Jimmy, um I added to Amazon too. Uh the one I'm not adding to is Meta because it's a bit frustrating, but I'm not going to sell out of it completely. I do recognize it's very cheap, but they have to show better monetization uh for that stock to really take off and I think they eventually will Scott, but that's a timing kind of thing. I think there's more upside in Amazon. I think there is more upside in Nvidia and I I have a lot of other technology stocks that I like too. I >> What was the Nvidia stat that the valuation was like the cheapest it's been in seven years? >> Seven years or something like that, right? >> Yeah. I mean, and this is a company that has 97% of the GPU market. Okay, fine. They're getting more competition, but it's not going to go to below 90. And I think this company has proprietary software that actually also is really hard to replicate as well. So, I think there's a lot of ways you can win with this one. And I just think it's really out of favor right now. And that is very interesting to me. I know the chart looks horrible, but it's really interesting to me that it's kind of found its footing around these levels.