Stock price when the opinion was issued
Own, don't trade this Is -30% from highs, including a sharp sell-off today. Buying into weakness has gotten you hurt, so stand back and wait a bit. Tariffs will raise the price of an iPhone from $550 to $850, though costs could be lower because of manufacturing shifting to India. Apple is stuck in a trade war between the US and China. A tough call.
Tech leader, but beaten up badly due to tariff concerns. Down ~30% from recent highs. Iconic brand, strong cashflow, loyal customer base. Giant revenue generator. Services segment has very high margins, is expanding, with very stable revenue stream. That will cushion all the near-term uncertainties. Pricing power.
Actively diversifying production outside of China. Wearables are part of the growthier area of the business. Right at the 200-week MA of long-term support. Pretty good medium- and long-term entry point. Solid balance sheet, disciplined capital allocation. Steady 15% earnings growth going forward. Yield is 0.52%.
Markets are down today from Trump hectoring Jay Powell badly. If this leads to a constitutional crisis, you will need some cash. He always believed that the President can't fire the Fed Chair. This talk and tariffs have done enormous damage to stocks. Losses could worsen if Trump keeps trashing Powell without achieving a good tariff deal. Washington is incredibly biased against Nvidia and Apple, two excellent companies. Trump is more interested in cutting off China than advancing America's interests. This makes NVDA a hard stock to own, though not as bad as Apple. Apple makes the best consumer products on Earth, and they will eventually get AI right. But Apple makes a lot of products in China. The market could get worse, but at some point the pain will get so bad that Trump will back its most punitive measures. There has to be some sanity here. A strong Apple with business in China is in America's interest, while Nvidia is worth supporting. It doesn't have to be this way!
The consumer-related companies are taking it on the chin. In transition -- can they produce in the US or not? From what he understands, moving manufacturing to the States would increase the cost of products dramatically. Getting crushed in China from competition. Tougher to change course.
AMZN's retail side is taking a bit of a hit. Cloud business is great. Imports all its goods, and can more easily switch to importing from countries other than China. He's not buying much of anything now, but if he were, he'd probably pick this one.
Has incredible gross margins. They just reported a fine quarter, but tariffs in China didn't help. The street perceives that as the last great quarter, so shares fell. Apple is trying to move production from China to India but who know how long it will take. Services revenue disappointed and a monopoly lawsuit doesn't help.