BUYING ON THE DIP: Financial expert talks big tech stocks

Meta's Free Cash Flow Drop [00:09]

• Meta's stock is falling after reporting a 91% drop in free cash flow.
• The stock is trading at 15 times earnings, while the S&P 500 trades at 20-21 times earnings.
• Meta is still growing at 30-35% and could improve cash flow by spending less on AI.

  "Meta's falling after reporting a 91% drop in free cash flow."

Buying Meta on the Dip [00:17]

• The speaker bought more Meta stock yesterday, viewing it as a buying opportunity.
• He notes that Meta is trading at 15 times earnings, which is 3/4 the value of the S&P 500, despite still growing.
• A potential shift in spending, such as reducing AI investments, could significantly alter Meta's cash flow situation.

  "I bought more yesterday, as a matter of fact, Ashley. Yeah, I think you have to."

Past Success with Meta [00:47]

• The speaker started buying Meta at $150, and it dropped to $85.
• He advised clients to buy at $85, and shortly after, Mark Zuckerberg announced a halt in metaverse spending.
• This decision led to earnings doubling and the stock taking off.

  "By definition, earnings doubled because all that money that was being spent now went into the earnings, and suddenly the stock was trading even cheaper, and it took off and that's never looked back."

Microsoft's Strong Earnings [01:17]

• Microsoft reported great earnings with record cloud growth.
• The speaker bought Microsoft yesterday as well.
• The Azure cloud business is growing at 43%, a new record after previously falling below 40%.

  "The Azure cloud business is what everybody looks at. That's the one metric. And, um, it's growing at 43%."

Buying Microsoft Despite Gains [02:13]

• The speaker recommends buying Microsoft stock even though it's already up.
• He notes that the Azure growth rate bounced back above 40% to 43%.

  "It's wonderful. You got to own this one, too. I know it's up, keep buying it."

Apple's Potential for Growth [02:15]

• Apple is expected to have room to run despite its recent strong performance.
• It is considered a core ingenuity name that investors should own.

  "Yeah, it does. I think Apple is one of those core ingenuity names that you just have to own."

Leadership Change at Apple [02:28]

• Tim Cook is transitioning from CEO to effectively chairman.
• The speaker believes this change could refresh the innovation side of Apple.
• He suggests that while Cook was brilliant at managing cash flow, he was less brilliant at innovation.

  "And I I hate to say it, but I'm glad to see him go because I think he was brilliant at managing cash flow. He was less brilliant at innovation."

Innovation and Future of Apple [02:40]

• Bringing in a new team at Apple is expected to enhance innovation.
• The speaker is optimistic about Apple's future under new leadership.

  "And I think bringing in a new team will Yeah, will refresh the innovation side. Yeah, absolutely. On Apple."