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The global sell-off is intensifying this morning, mainly driven by the technology sector. We would like to invite Dan Ives, Managing Director of Wedbush Securities. We see that the Nasdaq is now down about 856 points. Of course, Apple and Nvidia are among the main outsiders . Dan, what do you think about this sale?
Now it's like catching a falling knife. Do you want to catch this knife? So, look, we're helping investors get through this stressful time by choosing the best technology companies. What I consider the beginning of this artificial intelligence revolution. Without a doubt, investors are calling over the weekend and today asking, “Is this the end?
Is this the end of the tech bull market? I don't think so. I think this is just a mass panic that will create opportunities for Nvidia, Apple, Microsoft, Amazon, and Alphabet. This has been our approach for the past 24 years of working with the technology sector. So when clients call you today, you advise them to buy in this, what shall we call it, weak market, even though it feels like it's more than weakness?
Yes. I would say that we strongly recommend identifying the levels and stocks you want to own, because I believe it should be seen as an opportunity, not as an attempt to "catch a falling knife" given the growth prospects. Look at the profits, look at the numbers. I'm in Tokyo right now, and there's a demand for AI all over Asia.
It is not going anywhere, despite the Nikkei sell-off and the general fall in markets. This is what we are telling investors around the world today. Dan, I want to bring Apple stock up on the screen because one of the pressure factors, besides the overnight events and Friday's jobs data , was a disclosure over the weekend: Warren Buffett has officially halved his stake in Apple.
He still remains the company's largest shareholder. It looks like he's trying to raise cash. He also sold other stocks, which I think is also weighing on market sentiment this morning. But look, the stock is down 7%. What do you think is behind this sale? Look, Buffett sold a little bit in the first quarter, right?
Of course, the 50% off sale was impressive and I think it caught everyone's attention. This will only increase the pressure. It is still his greatest asset. He remains an ardent supporter of Cupertino. The largest asset, almost twice the size of BofA. Our view is this : if you look at Apple's last quarter, at the forecasts, at our expectations—270 million iPhones awaiting the AI-driven refresh cycle.
These are reasons to own Apple, not sell it. Listen, when Buffett speaks, everyone listens, for sure. And rightly so , but now is not the time to sell Apple, despite some concerns. I think this is an opportunity, especially on the eve of what I call a truly historic update cycle for Apple. Earlier, we spoke with Tom Lee about the macroeconomic situation and what to expect in the next month or two.
He thought you would never...I don't know, if ever. True stability may be difficult to achieve by October. So even if the market rebounds sharply in the coming days after the drop, it is very difficult to predict the situation in August and September before we confidently get back on our feet in October.
Yes, look. I think Tom, of course , has great advice. This will be a time to hold on tight, especially in the coming months , given the approaching elections. But if you look at the fundamentals in the tech sector, the soft landing, and the Fed cutting rates—this is exactly the time to own tech stocks.
I understand the Bears have won in the last week or two, right? After being in hibernation for the past 18 months. I understand, but if you look at quality tech companies, big capital, and AI—this is, in my opinion, a cycle that happens once every 40 years, and these stocks are worth holding. And that's why we are here , supporting you during this stressful period, now is not the time to run away.
Denis, the earnings results that we saw—sometimes people get hung up on the details, but overall they're pretty good for the G7 across the board. So what we're seeing now is probably just a couple of outbursts of enthusiasm, maybe some compression of multipliers. And what happens if it's a negative feedback loop and everything starts to weaken and you get hit not only on multipliers but also on profits?
Is n't that right? I mean, the NASDAQ is already down 10%. Where could the bottom be? Yes, I think the sale will probably continue. Look, I think there are concerns. They are baseless at the moment , aren't they? Not just what we saw in the earnings reports, but also what I see here in Asia in terms of demand for the rest of the year and into 2025.
But this will be a kind of "ghost" that, in my opinion, Wall Street will struggle with, wondering what might be waiting around the corner. But if you look at the fundamentals, they are strong for the technology sector. Balance sheets are strong, and again , this is part of the once-in- 40-year AI spending cycle.
Of course, there will be losers in this . Look at Intel—it was obviously a disaster, as were some others. But when it comes to quality technology companies, large cap, software, or semiconductors—these are the assets worth holding and not selling, despite the obvious nervousness that is currently prevailing around the world.
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