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Financial advisor Gil Morales argues he would not buy the tech giant and why Google does not have a strong growth trend.
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Or get back to -- we have a no love to called -- a -- stuff that's -- -- Joining the company from Los Angeles -- allies with the virtue of selfish investing dot com co all thought in the trading quickly and yields -- cycles right.
-- stocks have been apple let's talk -- -- with 500 dollars and -- Are you -- buyout if it dips below 500.
No I'm not actually and as you know from Alaska appearances cured I've been bearish on apple and its continued become -- that we were short the stock that last week but it dropped below 490.
We covered our position in the short term because I don't really want to sit through the earnings because I can't really gauge.
What it's gonna do at this point I think the stock right now a lot of the expectations are rather low so there is potential for upside move maybe 5% Max I think.
On a better than expected earnings report but.
You know I don't really have any opinion on it right now either way I do think you're right that it is a door stop -- it's probably dead money.
For the intermediate to longer term I mean what's the new killer app for apple another iPhone I don't think so they need to come up with something that's gonna drive.
-- -- earnings growth as the iPhone has over the last several years.
I apologize to spending so much time on apple on we really do focus on it on this program.
But you know most people in the stock market have a piece of Apple's through a mutual fund -- -- what -- it is.
So we have to give a lot of news but I I think it may have become a door stop right there a 500.
A wanna move on to Google definitely what about 700 that you do on selling and I wanted to tell us why.
Well I don't -- -- I'm not necessarily selling about do you think the stock is -- -- and it had had a very race I think it has no real growth ahead of a yet to think about apple Google rather.
In similar terms to apple because both stocks have had big -- over the last several years.
Google really has underperformed since 2007 -- is trading about driver was in December of 2007.
But again you have to ask yourself the same question what is the next big killer app.
From Google over 95% of the revenues come from not pay per click advertising revenue and they grow that.
At about 16% which is decent but the company selling at fifteen times forward earnings.
And over the next four years average earnings growth is going to be about 15% maybe a little less so I think it -- the stock is selling for what it's worth.
And unless they come up with something in its earnings report I think the stock could move lower from here.
I hope I got pretty much my take on got a twenty seconds ago to stocks where I I'm just talking is now that your.
Face -- -- at authority and Microsoft which of an -- 27 go.
I think Microsoft is making a bit of a comeback and I think the new windows operating system probably help them as well as their foray into.
Tablets and with the new mobile phone that they're moving -- especially also the dangerous job.
Engine as well FaceBook and I got bullish on the stock at 2728.
Was coming out of a nice basing pattern it's moved higher.
And you're just gonna have to see what they do in terms of coming up with another killer -- I'm less bullish about the stock at thirty that I was -- 26 point seven full disclosure do you an -- faced -- Microsoft no I don't I don't on any of them.
Big deal Morales with the very interesting name all of his company but -- -- -- investing dot com good stuff thanks very -- -- Aussie against -- -- big.
