This article analyzes the current state of Google (GOOG/GOOGL) and Apple (AAPL) stocks, providing insights into their recent performance and potential future.
The Current Market Situation
The speaker describes the current US stock market as a "monkey market," characterized by volatility and horizontal movement, making it difficult to predict upward or downward trends. This creates uncertainty for investors.
Google Stock Analysis
Recent Performance and Concerns
Google's stock has been underperforming, with the price stagnating despite positive market trends. While the S&P and Nasdaq indexes have risen, Google's stock has fallen this year. This underperformance raises concerns among investors.
Factors Affecting Google's Stock Price
Two main factors are identified:
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AI Competition: The rise of AI is perceived as a threat to Google's traditional search engine, its core platform.
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Antitrust Lawsuits: Google faces ongoing antitrust scrutiny, further impacting investor confidence.
Google's AI Development
The speaker argues that concerns about Google losing out in the AI race are overblown. Google has developed Gemini, an AI software similar to ChatGPT, and has integrated AI into its existing search engine with features like "AI Overview." They are actively transforming and investing heavily in AI.
Antitrust Lawsuits: A Long-Term Perspective
Antitrust lawsuits are a recurring issue for large tech companies. While they can temporarily suppress stock prices, they rarely have a fatal impact on the underlying business. The speaker suggests these lawsuits often result in fines, which large companies can afford.
Long-Term Performance and Valuation
Despite recent struggles, Google's long-term performance remains strong. Over the past five and ten years, it has outperformed major stock market indexes. Additionally, Google's current valuation, with a PE ratio under 20, is considered attractive compared to other tech giants.
Investment Strategy for Google
The speaker suggests that the current suppressed stock price presents a buying opportunity for long-term investors. He recommends a strategy of gradually building a position, starting with an initial investment and adding more if the price drops further.
Apple Stock Analysis
Recent Performance
Apple's stock has also been struggling recently, experiencing a decline from the beginning of the year and in the past year, in contrast to the growth of SPY and QQQ. They have also lost their first global market share.
Impact of Tariffs
The main reason for Apple's recent stock performance is the tariffs policy since Trump came to power. Since Apple relies heavily on overseas production and assembly, tariffs have had a significant impact.
Wall Street's Perspective on Tariffs
Analysts believe that Apple's pricing power, global influence, and brand loyalty provide it with sufficient flexibility to effectively deal with this risk. They believe that the threat of tariffs is unlikely to constitute a major long-term problem.
Investment Strategy for Apple
Apple is positioned as a "midfielder" in an investment portfolio – a stable, reliable stock for long-term growth. While not expected to double quickly, it offers steady returns. It is a good option for investors seeking stability and diversification. If the price drops further to 193 or below, it would be the time to buy in.
Brokerage Promotion
The speaker promotes Fudu MuMu, offering cash cards, gift cards, and free stocks to new users who sign up through their exclusive invitation link. They emphasize that this bonus is specifically for their fans and audience.
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