Since I moved Apple Inc. (AAPL) and Meta Platforms Inc. (META) to a “Hold” on July 3, they and the rest of the Magnificent Seven have been clobbered. There should be a reprieve when they start reporting good earnings in a couple of weeks, but then I expect the relative underperformance to continue for a while, notes Michael Murphy, editor of New World Investor.
There is a lot of optimism going into the June quarter earnings season. With the bar set this high, watching how companies perform and, most importantly, how the market reacts will be key.
As for AAPL and META, BofA pointed out that history shows the winners from new tech booms are often the broad economy, not early investor favorites. I’ll say the usually-wrong words: “I think this time is different.” The big guys have many more years that they will dominate. Of course, the AI boom will peak sometime. Just not yet. I fully expect to put Apple and Meta back on the buy list soon.
Speaking of AAPL, Apple TV+ got a record 72 Emmy nominations, including their first-ever Outstanding Limited Series for Lessons in Chemistry, an Outstanding Drama Series for both The Morning Show and Slow Horses, and an Outstanding Comedy Series for Palm Royale. STEVE! (martin) a documentary in 2 pieces and Girls State got multiple nominations, including Outstanding Documentary or Nonfiction Special.
After downgrading Apple stock just over a year ago and, I am sure, giving the sales force multiple opportunities to write sell tickets, Loop Capital upgraded the stock from "Hold" to "Buy" and raised its target to a Street-high $300, giving the sales force multiple opportunities to write buy tickets. See how this works?
Recommended Action: Hold AAPL.
