We begin with the call from Goldman Sachs to avoid apple, to sell it. John, to you first it is your biggest position. Is this the right call from Goldman Sachs reiterated to get out of apple all right were not hearing jon. Well work on that the steve, youve trimmed a bit of it what do you make of this call. We see apples recent Stock Performance and trading level as unsustainable and will continue to recommend that investors avoid this stock i did trim some a number of months ago its still my biggest position i trimmed it to me, apple is the market right here the stock does not deserve to be where it is but neither does the market and neither do a lot of stocks. I believe youre in front of the companys biggest Product Launch ever, which will be the 5g phone. The market is forgiving lot of the sins if youre looking at purely does it deserve to be here in a microscope looking at apple . No you can make that case on anything im not selling anything let me take that back. I may trim a little if next week the earnings blow it away. Right now im sticking with where i am tiffany, you own it as well they cut the price target to 299. Thats nearly 100 bucks below where it is now. Thats from 263. They think the stock may appreciate to their price target they forecast their calendar year 21 earnings per share for apple. 16 below where consensus is they expect late 2020 product demand results to begin to support their thee si. They dont expect the short term numbers to provide much in the way of incremental data or refute their sale call they think the stock is unsustainable. Its such a controversial call for anybody to come out a say avoid what has been one of the markets best stocks for years before we get nerdy on the metrics of apple, lets think about who are apples competitors. Nobody they figured out how to create a cult following and connect their customers to every single aspect of their lives theres a reason why warren buffet has a big position in apple. Weve been owners fin apple for years and years. We really cant rely solely on the traditional metrics we use to evaluate companies. Well have to consider the time that were in and really consider the fact that with the company like apple, no one has been a i believe to do what they have been able to do jon, we got you back. As i said at the out set, its your biggest position. Sell apple theres a lot of stocks out there, even some of the others of the big five and maybe the big ten, if you will out of growth tech that may be worth taking a look at to sell you dont hear too many people coming out and saying sell apple. No. You dont. You dont for exactly the reasons that stephen said at the top of the show. When you have something as big as 5g coming out here, scott i cant understand the call. As you and i talk all the time, when people either are afraid of holding onto a stock that can be a good thing when people decide they want to take profits, thats also a good thing. If youre taking the profits, a, where do you go with the cash because cash gives you nothing and what stock in the tech space, which we all agree is still one of the hot spaces, what stock in that tech space do you replace apple with do you go into amazon harder do you go into microsoft harder. Fantastic numbers out of there if the call was lets rotate out of apple and over commit some of that apple to microsoft, i get it a little bit more but i dont see anybody with that 5g potential out there in future just ahead of them what if steve is right. The fundamentals and the Stock Performance dont match. He said it doesnt deserve to be here no nonetheless, it is theres a lot of stocks people may argue dont deserve to be where they are they the question is this the name that you look on your list and say, i think its time to get out of apple i think this is name where if youve been in it for a long time and experienced this whole run up, you can trim a little bit. You can take some of your winnings this is not name that will have a fundamental break down a lot of other guests have already said, this is something that has a huge competitive mote around it. If youre going to do fundamental analysis on a stock or on any of these big tech names, apple is something that continues to have high switching ko costs. Its tough to get acustomer away from apple the fundamentals of it put a floor on it even if theres some softness maybe there is softness within the fundamentals that people, jim, just keep ignoring. Tony comes on here and says dont ignore the issues that are there even as though he has been run over like a lot of analysts have who have tried to either play the negative side on apple or as goldman suggest to get out of it. What if i say to you, yunit sels arent what they were. Services growth arent slowing you cant refute that, can you well, youre the first person to bring up the services in this discussion so far. I dont know that it is slowing. Obviously Services Growth is slowing. We know that Services Growth has slowed is it slowing to where you need to worry about a substantial Growth Business for apple Going Forward at a time when iphone sales have slowed . This analyst has the price target at 299 which implies he thinks theres a bear market coming for apple stock i think thats a really hard call to make regardless of what you think about the growth rate of services. It is still growing and high margin if you look at the multiple of this stock, its in the mid20s for apple. That gives you a peg ratio right around 2. 0 all of these numbers from the Interest Rate environment that were in are absolutely acceptable and not at the level that would imply you should have a bare market in your forecast for apple. I think this is a too big of a hill that youre going to die on steve, jon brings up a good point. Are you going to put it in the big five im not i would put it in taiwan semis youre still getting apple but youre also getting others involved taiwan semi. They are the largest out sourced chip manufacturer in the world you have the apple pargs there but not totally depen dent upon it i dont think you have to look at the top ones. I would not look at putting more money to work in microsoft or the others that jon mentioned now. Hes right there are other stocks to buy in the tech world chips are doing well today we saw great report from teradyne and it goes on. You can make the case if you dont apple, if theres anybody watching that dont own the stock, okay, avoid it. Maybe other places to go you get better bang for your buck youll make more money elsewhere. Who knows. The other question is if youre in the name, do you take this advice from Goldman Sachs and say nied i need to get out. Those are two entirely different conversations. Why if youre in this, would you want to get out. Youve been proven wrong most every single time people have done it. Were in it were not selling it i dont have the answer to that question i do not, in the case agree with Goldman Sachs which kind of surprising i dont see a reason why you should get out of apple now. Liz, maybe it was a rhetorical question in some respects its just hard to make the case to get out of a name like apple. Its matter of are you an investor or trader as an investor, you expect equities to produce that growth. Tech is space that can continue to produce that growth its a matter of in this moment today. Its a good entry point now overall. You could make slowly drip in. To steves point, theres a lot of other places in tech to invest in if you need that exposu exposure wait a minute, youre waivering on whether tech is a good place to be now you think its too expensive as a group in. I dont think its too expensive as a group im going to back this up to what would kill the growth trade. Thats really what this is about. Tech drives the growth trade what would kill the growth trade is longer Interest Rates rising. If youre new to the market and looking for things to buy ta are reasonably priced, tech isnt at the top of that reasonably priced list. Jon, what about microsoft does microsoft want to make you stay a part of the high growth momentum trade absolutely, scott they plu out earnings on both fronts top and bottom line. Microsoft is absolutely killing it here, scott i saw five different analysts all raise price targets today. I realize stock is softer. Some people said, oh, cloud not growing as fast as some people thought perhaps but my gosh, the numbers here are phenomenal. Was the quarter phenomenal. You use the word astonishing why is the stock selling off then were they good enough to meet where the stock has already run to into the number the street seems to be voting today they might not have been i think youre exactly right. I dont see one of their business lines that is not doing as well as anybody could have hoped for inclu ed for. The only one people cited for the weakness today is linkedn. It wasnt that linkedin was a bad acquisition. Advertising was not nearly as strong as people had hoped that was the only thing looking deep into these numbers that i saw that was even soft if you want to refer to that as soft. Ill give you that 2 sell off, is that really something that people would be wringing their hands over . Not me i think thats a referendum on the growth trade and where the market has been. Wiess, you call the quarter okay the cloud did slow down a little it grew at 47 thats great growth. It did slow down. You want the make sure the company youre with is secure. Their systems will always be on and theres no issues. Thats why its difficult for ibm to make many head waves into the area its going to continue to be amazon and microsoft i want to go back to something you reference kramers comments about apple is one that you buy but you dont trade. Where i take issue is he sold some amazon from risk control purposes you have to do the same with apple. I would tell you that amazon has performed much better fundamentally than apple if i had to pick one that i wasnt going to cut back on, probably be amazon it wouldnt be apple you have three Different Companies there that works with three different net ricks. None of that matters its a valuation holiday the stock is going up regardless of what its worth if wie need to have a conversation about a reality check for some of these stocks as much as the they are loved and theres a good reason why they are where they are that they still have potentially gone a little too far too fast and its time to step back and take a real look at where these stocks are maybe thats what gold mman is doing again with apple maybe its time for us to do the same thing okay. Ill point out the goldman call is more than apple is a little ahead of it. Its a lot ahead of itself your point is well taken and i agree with it. Good quarter and its kind of down 2 today. That might be healthy. That might be the consolidation that you need in a name like microsoft. Some of them are coming back Airline Stocks after terrible reports. My point is not that we should go pile into the airlines and sell apple to do it. If youre right, and i think you are. We should have a reality check that reality check can simply be consolidation at the top they move sideways for a while and the rest of the market catches up i dont know. Thats a healthy transaction in a stock market thats about 3 from its all time high. Maybe, liz, the reality check is the naysayers need to get a reality check and say theres nothing theres no reason why these stocks should go down or you should get out the reality is they are better positioned than everything else. Thats the reason why they are where they are in the first place. Theres no reason why thats going to stop any time soon. Maybe thats the reality check rather than saying maybe these things have come too far too fast i think a lot of the stocks were the recovery trade. Are they going to slow down or go sideways, maybe i would argue probably that doesnt mean you exist the trade. I would argue your strategic targets should be overweight tech here. Overweight the names that will lead out of a recovery and defense isnt what wins this game you have to have offense on. In order to have offense on, youre not going to fill a portfolio with Consumer Staples names that are paying dividends. Speaking of the porschs of the market, that thing is running. Maybe its a referendum in some respect on momentum trade. Maybe its its own being i have calls at the 1100 strike which a t the time just a month ago were well out of the money as the stock was a thousands dollars. Then as it surged here through 1100, through 1700 on tennessee highs, we were selling calls at the 1300 strike. Thats not because i dont still believe theres more magic that elon, that dust he sprinkles on this stock that causes it to do this on the other hand this one became too much of an overweight im comfortable with being overweighted in apple because im pretty sure of the numbers that they are producing. I think this factory in texas will be good for them, for tesla. I think thats a couple of years in the making. I dont think you just throw a switch and its open i was willing to take some of the money off the table. I said 50 im taking off. Ill let the rest run a bit. If we start violating the downside then id look at reevaluating. Right now im happy with tesla tiffany, its been hard to find somebody on the program who owns the stock outright. We dont have many people who come on here who do. Jon and pete have played it occasionally through options i cant think of another pemrson on the program who has owned it. You own it what do you do with it in. I do. Let me just level set here for a second we have clients that really love tesla and in our ownership of tesla has been driven by that. For me, one of the highlights of earning season is listening to the tesla Earnings Call because its pure entertainment. You dont know what elon musk will say he is a rock star. An obscure rock star but a rock star nonetheless i do know not what kind of secret sauce they sprinkle on that stock to make it do what it has been doing it really is nuts. Our clients really love the story of tesla they love the esg play yesterday on the call, elon musk was all about innovation and i think he offered up a contract to companies that can sustainablely mine nickel. He put a call out for engineers that want to be on the cutting edge of design its an Earnings Call like no other. We do own it we have held onto it it has done very well. S you think in. This was purely client driven i cant explain it i dont have a formula to figure it out can the momentum keep going the Stock Performance speaks for itself hes run over and made fools of people who have bet against him. The question is can this really continue or is this a picture of what will end up being one of the more unsustainable stock stories that we remember in 2020 together it produces 60 times the number of automobiles. Im not saying go out and short this thats krad zi its like suicide. I do think when you look out a year from now that some rationality will have returned to the stock does it go higher from here . It may well. This is pure speculation this is not investing. With these high growth companies, its speculation. It all senses it when you bought facebook or any of these companies, arent you speculating that the fundamentals will grow into what the stock is trading for at that current time why is this any different . To the extent we dont no the future, yes. You have to look at the return potential and say is this worth the risk given how much i dont know i dont know enough about what the cash flows are going to be a will the of the earnings, we know theres a lot of the earnings was the sale of those tax credits to other companies it wasnt just pure earnings fair point. This is very hard for me to get behind im looking at reaction from the street today Piper Sandler goes to a street high of 2400 bucks those are the words that matter, street high. The street has just chased these names that have run and run and run all week long. We have seen analysts bump their price target up. Maybe its not the best example to bring up. I dont know its hard to get in front of this Freight Train look, i think tesla is a good company, a Great Company i think musk is a unique individual, truly a genius to me theres too much hype in it still if it were normal company and they made their money by selling a Mission Credit to the other Auto Companies which is how they turn to profit this year, this quarter, then the stock would get crushed. You had company where the ceo says we dont want the make a lot of money we really dont want to go bankrupt i assume that was said tongue and cheek. These are the true believerers theyll get it higher. To raise your price target to that level just seems like lunacy thats part of the lunacy. Ill play along because i dont think it ends any time soon. I want to get to a quick break. We have the lows of the day for apple. Goldman sachs reiterating to avoid it the stock is down about 2. 5 coming up, kramer making a big call on the bank os on halftime you can watch or listen to us live or on the go. Were back after this. Save hundreds on your wireless bill without even leaving your house. Just keep your phone and switch to xfinity mobile. You can get it by ordering a free sim card online. Once you activate, you only have to pay for the data you need, starting at just 15 a month. There are no term contracts, no activation fees, and no credit check on the first two lines. Get a 50 prepaid card when you switch. 5g is now included with all new data options. Switch and save hundreds. Xfinity mobile. Were back lets go to sue. Here is whats happening at this hour, everybody a federal judge has ordered the release of former trump lawyer, michael cohen. The judge says he believes the government sent cohen back to prison in retaliation for writing a book about the president. Cohen is set to be released to resume home confinement tomorrow a cafeteria in the white house has now been closed after a worker there tested positive for coronavirus. Contact tracing is being conducted. The White House Medical Office tells nbc news the risk of transmission is low. Taylor swift has a big surprise shes releasing a new album tonight. Its called folklore and she said she wrote the whole thing in isolation theres eight versions of the album. Each with a different album cover. Look forward to that very m