Apple's product launch fails to impress investors

RELEASED ITS LATEST IPHONE YESTERDAY, THE IPHONE 16, IF YOU CAN BELIEVE IT. >> THE REACTION BY INVESTORS AS A LITTLE BIT MORE MUTED. OUR NEXT GUEST SAYS THE RELEASED EXCITON SAYS IT MIGHT BE TIME TO BUY THE DIP ON SOME OTHER DISCOUNTED TECH STOCKS. FOR MORE, LET'S BRING IN ROSS KERBER, PRESIDENT AND CEO OF GERBER KAWASAKI ROSS, THANKS AS ALWAYS FOR JOINING ME. ONE OF MY FAVOURITE REACTIONS WAS SOMEBODY SAYING THAT WHOLE EVENT BY APPLE, IT COULD HAVE BEEN AN EMAIL. >> YOU KNOW, THEY'VE BEEN DOING THIS FOR SOME TIME. I I DON'T KNOW WHY THEY HAVE TO HAVE EVENTS FOR THESE THINGS WHEN WE'RE JUST WATCHING VIDEOS ANYWAYS OF OF MOST OF IT, BUT IT'S REALLY MOSTLY ABOUT THESE INCREMENTAL, YOU KNOW, CHANGE ADVANCE WHERE THERE'S REALLY NOTHING NEW OR REVOLUTIONARY THAT ARE LIKE PROMOTING. SO THAT THAT'S REALLY WHAT I QUESTION IS APPLE'S REALLY PREPARED TO RELEASE AI FEATURES AND WHY EVEN HAVE A NERVE THAT AND UNTIL APPLE CAN REALLY LIKE CLEARLY SAY THIS IS THE VALUE PROPOSITION OF BUYING A NEW PHONE. BUT I STILL THINK WE'RE ON A PRETTY NORMAL UPGRADE CYCLE. SO YOU IPHONE HAS BEEN SERVED AS A LACKLUSTRE THING FOR A WHILE, BUT STILL SOMETHING EVERYBODY DESPERATELY NEEDS. >> AT EVERY COUPLE OF YEARS. >> THE AND THE STOCK FINDS A WAY IT FINDS A WAY TO ALL-TIME HIGHS. IS IT ONE THAT YOU JUST CONTINUE TO HOLD BECAUSE FUNDAMENTALLY, IT'S, IT'S A GOOD BUSINESS. >> YOU KNOW, CASH FLOW KING RETURNS ALL ITS CAPITAL SHAREHOLDER. SO IT'S EXTREMELY SHAREHOLDER-FRIENDLY COMPANY AND THEY HAVE OPPORTUNITIES THAT THEY CAN EXPLOIT IF THEY'RE MORE AGGRESSIVE, ESPECIALLY, THEY'VE REALLY GOTTEN QUIET AROUND APPLE VISION PRO, WHICH WE THINK HAS A LOT OF OPPORTUNITY, BUT THEY JUST ARE NOT 100% COMMITTED TO THIS BEING A GAME-CHANGING PRODUCT. AND A LOT OF THAT COMES AROUND BUILDING A LOT OF CONTENT FOR. BUT THAT SAID, APPLE HAS A GREAT BUSINESS AND I THINK ONLY NOT TO IT IS IT'S AT A PREMIUM VALUATION. HOW FOR APPLE, WHICH I THINK IS WARRANTED CONCERNING THE AI REVOLUTION AROUND THE CORNER, BUT YOU'RE CERTAINLY NOT GETTING LIKE A DEAL. LYING APPLE COMPARED TO SOME OF THE OTHER TECH STOCKS. SO I MEAN, YOU TALKED ABOUT MAYBE BUYING THE DIPS IN SOMETHING GOOGLE JUST AS ONE OF THOSE DIPS. >> IT PULLED BACK MORE THAN 20% FROM ITS MOST RECENT PEAK. DO YOU COMFORTABLE GETTING IN FRONT OF GOOGLE AT THESE LEVELS? >> YEAH, YOU KNOW, GOOGLE'S INTERESTING PLAY BECAUSE ON THE UPSIDE FOR GOOGLE, YOU KNOW, THEY'RE JUST DOING PHENOMENALLY WELL. AND WAYMO IS WORKS AND IT IS THE FUTURE ROBOTAXI IN MY MIND RIGHT NOW. AND I THINK GOOGLE HAS A LOT OF OPPORTUNITY, AN AI AS WELL. BUT I THINK WITH THE ANTITRUST ISSUE IN THE JUSTICE DEPARTMENT AND YOU LOOK AT MICROSOFT, IT KIND OF HELD MICROSOFT BACK FOR DECADES, ALL THE LAWSUITS. AND STEVE BALL, MERCED, YOU KNOW, SORT OF POOR PERFORMANCE. SO WHAT I WORRY ABOUT IS GOOGLE GET STOCK IN SORT OF A RIDE FOR A PERIOD OF TIME BECAUSE OF ALL THE ISSUES THAT THEY FACE. SO THAT SAID, I THINK THAT'S IN THE VALUATION OF THE STOCK. AND WHEN YOU LOOK AT I-17 18 TIMES FORWARD EARNINGS FOR GOOGLE, IT SEEMS ABSURDLY CHEAP AND INVESTOR SHOULD OWN GOOGLE IN THEIR PORTFOLIO. SO THIS IS CERTAINLY A TIME ASSESS LETS TALK ORACLE, WHICH IS THE REAL BELLE OF THE BALL TODAY, SURGING BEST FOR ON THE S&P. >> ANOTHER RECORD HIGH AS IT SEEMS. I MEAN, THEY'RE REALLY TALKING ABOUT THIS BEING THE EARLY INNINGS FOR, FOR THEIR DATA INFRASTRUCTURE BUSINESS. DO YOU THINK OF IT THAT WAY? >> YEAH, I DO IN YOU KNOW, WE'VE BEEN INVESTORS ORACLE A 68, MY SON, MY FUN GK MY FIRM AND YOU KNOW, WE SAW IT AS THIS IS KIND OF A BORING COMPANY WITH SORT OF THE STATUS CENTRE BUSINESS. AND THEN ALSO THEY BOUGHT CERNER HEALTH CARE. AND THEN BOOM AI COMES THE CORNER AND ORACLE GOES ALL IN UPGRADING DATA CENTRES AND RENTING THEM OUT TO ALL THE DIFFERENT PLAYERS AND AND THE REST OF THE BUSINESS IS BORING. BUT WHEN YOU LOOK AT THEIR DATA CENTRE BUSINESS ALSO IT'S GROWING AT OVER 20% AND HAS A LOT OF POTENTIAL. SO ORACLE IS ANOTHER EXAMPLE OF THE STOCKS LIKE APPLE IS AN ALL-TIME PLAYER. BUT NOW GETTING REVITALIZE WITH ALL THIS NEW INVESTMENT IN AI. WE'RE AT ITS VALUATION HAS NOW MOVING UP. YOU HAVE MORE TOWARDS THE PE RATIO, BUT STILL, I THINK A GREAT OPPORTUNITY FOR INVESTORS. I MEAN, I THOUGHT IT WAS ASTOUNDING THAT WE HAVE LARRY. LARRY ELLISON, I'M SPEAKING ABOUT THE NUMBER OF CENTRES THAT THEY HAVE. >> IN OPERATION AND UNDER CONSTRUCTION, MORE THAN 160, BUT EVEN SUGGESTING THAT THE MARKET CAN HANDLE MAYBE 10 TIMES AS MUCH OUR JANE TO KIND OF THINK ABOUT IT, THE SAME WAY. >> SO I'M NOT, YOU KNOW, LIKE A TECH ENTREPRENEUR INVESTOR. SO I HAVE TO PARSE OUT WHAT'S, YOU KNOW, HYPERBOLE AND BIG TALK, WHICH TECH INVESTORS, YOU TECH, YOU KNOW, TITANS LIKE TO VERSUS LIKE WHAT IS QUANTIFIABLE ON THE SHORT MEDIUM TERM. AND WHAT I THINK IS THAT LARRY ELLISON IS RIGHT THAT IF WE'RE REALLY GOING TO UPGRADE ALL THE DATA CENTRES IN THE WORLD, MAKE ALL THIS DATA USEFUL. IT'S GOING TO TAKE A TREMENDOUS INVESTMENT THAT WILL TAKE A DECADE IN, IN MY MIND, WE'RE AT THE BEGINNING OF THIS TEAM AND INVESTORS CAN THINK SHORT TERM WHEN YOU MAKE AN INVESTMENT INTO APPLE, ORACLE AND MICROSOFT. FOR EXAMPLE, INVESTORS HAVE TO THINK LONG TERM AND SAY WAIT, HERE'S THIS TEAM THAT CAN ACTUALLY CHANGE THE WAY WE INTERACT WITH COMPUTERS AND EVENTUALLY THE WAY WE LIVE OUR LIFE. AND THERE ARE SO MANY USE CASES, WHETHER ROBO TAXIS OR IPHONES, THAT CAN SORT PICTURES BUT AI IS GOING TO BE, YOU KNOW, INFLUENCER LIFE IN MANY WAYS. SO THERE'S A HUGE OPPORTUNITY FOR INVESTORS MY FUND IS ONE WAY TO PLAYER BUYING INDIVIDUAL STOCKS. BUT THE BEST THING TO DO IS MEET WITH YOUR FINANCIAL ADVISOR AND GET SOME THAT YOU'RE, YOU'RE NOT MISSING OUT ON THIS OPPORTUNITY. SO EVERYBODY TALKS ABOUT THIS OPPORTUNITY RECENTLY, IT SEEMS LIKE A EYE FATIGUE HAS SET IN. >> PARTICULARLY WITH THESE LARGE CAPS, RIGHT? THEY'VE UNDERPERFORMED THE S&P THEY'VE UNDERPERFORMED THE EQUAL WEIGHT US AND P OVER THE LAST 3 MONTHS. ARE YOU WORRIED ABOUT THAT? >> HONESTLY, 3 MONTHS GOES BY SO FAST AND MY AGE, IT SEEMS ABSURD. EVEN QUANTIFY THINGS. IT'S A SHORT-TERM TIMEFRAME. SO WELL, I LOOK AT IS A ONE-YEAR CHART. AND IF YOU LOOK AT THESE BIG CAP STOCKS THAT CRUSHED IT. SO YOU KNOW, THAT'S WHERE WE'RE AT STOCKS TAKE A BREATHER. 30 P E'S FOR MICROSOFT AND APPLE SEEM APPROPRIATE. YOU KNOW, SO EARNINGS HAVE TO GO OUT FOR THE STOCKS TO GO AND THAT'S WHAT WE'RE SEEING IS EARNINGS ARE GOING SO WHEN YOU LOOK STOCKS LIKE BROADCOM OR NVIDIA, AND YOU LOOK AT THEIR 40'S AND THAT IN THE MID 20'S THEN MAKING THEIR NUMBERS IN NEXT 12 MONTHS. THESE STOCKS MAY BE ARE ABSURDLY CHEAP. SO YOU KNOW, ONCE AGAIN, I THINK THERE GOING TO HAVE TO PROVE THEY'RE PUTTING NOW THAT VALUATIONS ARE HIGH, BUT I THINK THEY WILL. AND SO THAT'S WHERE THE OPPORTUNITY LIES FOR INVESTORS IS IF THESE COMPANIES TO LIVER OVER THE NEXT