Is Apple Finished? Reaction to Tariffs Shaking the Tech Giant’s Future, Should You Sell Your Stock

0:00This is an iHeart Podcast. Guaranteed Human. Run a business and not thinking about podcasting? Think again. More Americans listen to podcasts than ad-supported streaming music from Spotify and Pandora. And as the number one podcaster, iHeart's twice as large as the next two combined. Learn how podcasting can help your business. Call 844-844-iHeart. When segregation was a law, one mysterious black club owner, Charlie Fitzgerald, had his own rules. Segregation in the day, integration at night. It was like stepping on another world. Was he a businessman? A criminal. A hero. Charlie was an example of power.

0:38They had to crush him. Charlie's Place, from Atlas Obscura and Visit Myrtle Beach. Listen to Charlie's Place on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This is Ryder Strong, and I have a new podcast called The Red Weather. In 1995, my neighbor, Anna Trainor, disappeared from a commune. It was nature and trees and praying and drugs. So no, I am not your guru. And back then, I lied to everybody. They have had this case for 30 years. I'm going back to my hometown to uncover the truth. Listen to The Red Weather on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

1:20This episode is brought to you by PNC Bank. A lot of people think podcasts about work are boring. And sure, they definitely can be. But understanding a professional's routine shows us how they achieve their success little by little, day after day. It's like banking with PNC Bank. It might seem boring to save, plan, and make calculated decisions with your bank. But keeping your money boring is what helps you live a more happily fulfilled life. PNC Bank, brilliantly boring since 1865. Brilliantly boring since 1865 is a service mark of the PNC Financial Service Group, Inc. PNC Bank, National Association Member FDIC.

2:26partners square makes it easy for them to take payments manage inventory and run their business with confidence all from one simple system if you're a business owner or even just thinking about launching something soon square is hands down one of the best tools out there to help you start run and grow it's not just about payments it's about giving you time back so you can focus on what matters most ready to see how square can transform your business visit square.com backslash go backslash EYL to learn more that's square.com backslash go backslash EYL don't wait don't hesitate let Square handle the back end so you can keep pushing your vision forward okay we're not even gonna play no games let's let's jump right into this yeah the first thing I want to talk I'm going to ask you is um is Apple efficiently effectively done is when I say done i mean like is it time to take them out of the two tech to index philosophy is it time to is it time to abandon ship because it's like if tariffs is really going to happen and this iphone is going to come to 2200 for the most expensive one right we already talked about all the other problems that they have and apple is the leading stock in a lot of major etfs um QQ, I think it's the leading in XOK, and it's the leading stock in a lot of people's portfolio.

3:56Warren Buffett sold a lot of his Apple stock. We'll talk about him later. Has the day come to abandon Apple? I mean, I just said last week we needed a new CEO, and you called me crazy. I heard my heart. No, I didn't say you was crazy. No one said crazy. You can't play it. Muy loco. You can't blame this on Tim Cook, though. This is the tariff thing. Rule number one is a CEO man, and man, everything that happens on your watch is your fault. That's true. That's true. Oh, but they made the move to India to offset tariffs. Great way to play late. That was even part of the question last week, right?

4:39Like, is their day coming when they drop under 20 %? Obviously, now they went down under 30%, but where we at? I'm going to give my honest take about this. And it's not because I created Two Tech To Index. If I made you money, please put yes in chat. Is that day here now? No. Do I think it could happen before 2034? For sure. Let's start with the positives. Gross profit margin, 46.52 % for a fledgling, non-innovative tech company. That is amazing. You can't take that away. And the number one, please write this down. The number one reason I constructed Apple and Microsoft into the tech to index scenario is drawdown.

5:29Even though they got their boot smoke today with Nike, what's the drawdown this year for Apple? Please put it in chat. Y 'all said, y 'all want me to restore the feeling to bring the old essence back. I got you. What's the drawdown this year thus far? So if you compare Apple to Tesla, Tesla drawdown is two to three times bigger than Apple. So when you're building your portfolio, the gains are important. But how much you can draw down is the most important thing you want to factor in and then profit margin. If that profit margin was 30 % of 29, Mortal Kombat, Fallis, Victory, Fatality, I would be replacing them for NVIDIA a long time ago.

6:11Now, what I don't like about the business, not a lot of innovation. They are even as tariff move. No, you can't solely blame him. But if you've been to the White House during this administration and last, you knew this was coming. How are you just now making an adjustment to make that move in India when you know India's market is more important than ours in terms of market share going forward for the next 10 years? I think he's reacting too slow. it's like when harden started doing a step back and then like everyone started doing it i remember the days when they would innovate and they would lead so it's a time yet but will i maybe move that date up from 20 34 to 32 probably well 20 32 i mean that's still a long so you're still bullish on apple yeah 46.52 gross profit yeah for sure i'm just asking because i I'm not attacking you, my brother.

7:06You my guy, yo. As long as those statistics stay the way they are, obviously, it makes a lot of sense. Yeah. I think the question for the people, a lot of people who are watching now is that, is this the bottom for Apple, right? This is 27 % down as of today. There still might be some room to fall here, right? When we're talking about tariffs, we saw, I mean, we were just sitting just watching our phones. now the china retaliatory tablet came through at 34 percent yep we come back now we had another 50 we're at 104 tariff we know china like 104 is crazy china accounts for 80 of apple's production capacity what that does to the business i know we spoke about india it's so interesting when we talked about india and we talked about the declining sales of the iphone inside of china we said maybe it's not a product it's a new region but it speaks to how long it takes to get these businesses up and running these factories up and running for sure they've been working in india for three years right they're saying potentially right if they expedite this the the manufacturing in india it could account to 15 percent of production and that's after three almost four years four years of building infrastructure together it can increase it from i think now where it's at like maybe seven to eight percent to up to 15 which is a a large jump but it took four years to do that right if you're talking about tariffs that are happening now there might there's not going to be another four years to sustain this and so something has to happen right like we gotta they gotta figure something out here or like a new ceo well i don't even know if a new ceo changes this right because the ceo of the country the way he's moving okay it's really tough you're right right you have a qu i have a question for you when you guys plan invest fest do you start three months before or the day after invest fest is over the most important thing for a leader is contingency my first thought every day is what combination of factors could put me out of business they got too comfortable with and i I said this in Stock Club, I'll say it here.

9:18Geopolitical risk first, then fundamentals, then technicals. You can't also eye your way out of this. So I think Apple got too comfortable. And the thing is, okay, we went to GTC. When's the last time we've heard any significant news come out of Developer Day at Apple? In terms of product or in terms of software? Anything. Yeah. i mean it's it's the typical the ios update the new macbook the new ipad they they tried with the vision pro that really didn't work so the products are lacking and we've we've covered apple intelligent if that was a financial product right i mean every quarter it seems it's almost getting forgot about in in the rollout of announcements right like that was supposed to be part of the phone when it dropped in in september they said it was going to be there by december we're here in april they still haven't really i mean it's it's there but nobody's using it to its full capabilities they have their june summits coming up and so there's a possibility there i hope so i don't know apple loads about 151 47.

10:30apple load the boat 151 okay all right all right you heard it there that's lower than the 52-week low for sure that's low that's pretty low but you gotta like apple at this price though at least on a dollar cost average you got it if you're looking two years out but if we i was starting a portfolio from scratch what i put them there first over nvidia absolutely not absolutely not but you would add them to the portfolio yeah they're probably six seventh eighth man you're you're good so so okay so for my personal i'm just personally curious if they're the seventh man and you wouldn't put them ahead of nvidia then why why are they still in the two tech two index why isn't it microsoft and nvidia for the two minimum of draw what's nvidia's drawdown so the minimum the risk reward ratio ratio especially you being a um approach being conservative the number one thing you have to factor in in business is how far can this thing drop and can you withstand the pain a lot of you traders right now are getting destroyed thinking that every trade that you could i know people who were short in the market who got whipped out to the upside because their stop was too tight and then it dropped to where it was supposed to go the first thing i'm always factoring in is how much risk will this investment buy me if i can mitigate that keep that within even the worst case now if have full-out contagion micro excuse apple and microsoft together may draw down 42 on average this including the steve steve jobs years if apple goes to 42 test is going to be 89 percent yeah that volatility is over with like you can and all the fundamental analysis you'll go through and all the charts that's great when you're down 72 you're not thinking anything rational you're going to sell.

12:29An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS-13 gang member from El Salvador accused of murdering a Texas man. A Venezuelan charged with filming and selling child pornography in Michigan. These are just some of the heinous migrant criminals caught because of President Donald J. Trump's leadership. I'm Kristi Noem, the United States Secretary of Homeland Security. Under President Trump, attempted illegal border crossings are at the lowest levels ever recorded, and over 100 ,000 illegal aliens have been arrested. If you are here illegally, you're next. You will be fined nearly$1 ,000 a day, imprisoned and deported.

13:11You will never return. But if you register using our CBP Home app and leave now, you could be allowed to return legally. Do what's right. Leave now. Under President Trump, America's laws, border, and families will be protected. Sponsored by the United States Department of Homeland Security. This is Ryder Strong, and I have a new podcast called The Red Weather. In 1995, my neighbor, Anna Traynor, disappeared from a commune. It was nature and trees and praying. And drugs. No, I am not your guru. Back then, I lied to everybody. They have had this case for 30 years. I'm going back to my hometown to uncover the truth.

13:52Listen to The Red Weather on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. When segregation was a law, one mysterious black club owner, Charlie Fitzgerald, had his own rules. Segregation in the day, integration at night. It was like stepping on another world. Was he a businessman? A criminal? A hero? Charlie was an example of power. They had to crush him. Charlie's Place from Atlas Obscura and visit Myrtle Beach. Listen to Charlie's Place on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This show contains information subject to, but not limited to personal takes, rumors, not so accurate stats, and plenty more.

14:35What's up, man? This your boy Nell Green from the Broken Play Podcast. Look, it's the end of the season. The playoffs are here. But guess what? It ain't the end of your season. You can always tune in with Broken Play Podcast with Nell Green on the Black and Fake Podcast Network. Not a team who ain't going to the playoffs. They're Chiefs. It's time to rebuild. Listen to Broken Play with Nav Green from the Black Effect Podcast Network on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts. This is an iHeart Podcast. Guaranteed human.