IN THE MEANTIME AS THE MARKET
CONTINUES TO SWOON RIGHT NOW
AMONG THE STOCKS GETTING POUNDED
ARE TECHNOLOGY STOCKS AND
IRONICALLY ENOUGH TESLA, THIS
EVEN WITH NEWS THAT ELON MUSK
WAS CHOSEN AS "TIME"’S 2021
"PERSON OF THE YEAR" BUT THIS
OFTEN TIMES HAPPENS BY THE WAY.
SOMEONE WHO IS RECOGNIZED FOR A
GREAT ACHIEVEMENT.
THEY COME ON BAD PRESS,
SOMETIMES THEIR COMPANIES, RARE
TIMES IT HAPPENS WHEN A COMPANY
TITAN IS FEATURED COMES UNDER
SOME DURESS.
SUSAN LI WITH US, RAY WONG,
CONSTELLATION CEO, EVERYBODY
WANTS TO RULE THE WORLD.
RAY WANTS TO RULE THE WORLD.
IT IS WORKING PERFECTLY.
GUYS, WELCOME TO YOU.
SUSAN, FIRST OFF THE CHOICE BY
TIME, REACTION OF THE MARKETS.
YOU COULD ALSO ARGUE A SEPARATE
REPORT OUT TODAY THAT TESLA’S
STOCK HAS COME TOO FAR TOO FAST,
SOME COMEUPPANCE IS DO.
WHAT DO YOU MAKE OF IT ALL?
>> BEAR ROANE’S REPORT TESLA IS
STRETCHED, 330 TIMES THIS YEAR’S
BOOKINGS.
I LOOK AT IT PRICE TO EARNINGS
STOCK, MORE OF A RATIO OF 16
TIMES.
I THINK "TIME" CHOSE THE RIGHT
GUY.
WHO ELSE ON THE PLANET IS THIS
INFLUENTIAL, MOVES MARKETS WITH
ONE SINGLE TWEET, RICHEST MAN ON
THE PLANET AND EVERYBODY PAYS
ATTENTION TO, YOU TELL ME,
EXCEPT FOR NEIL CAVUTO, OF
COURSE.
NEIL: OF COURSE.
RAY, IT IS INTERESTING, BECAUSE
TECHNOLOGY LED THIS MULTIYEAR
BULL MARKET PARADE.
I’M WONDERING GIVEN THE
"BARRON’S" ARTICLE, THERE COULD
BE A BREAKDOWN, NOT NECESSARILY
A CRASH BUT A REORDER IN THE
FACE OF HIGH INTEREST RATES
EVERYONE SAYS THAT IS
INEVITABLE.
WE HAVE NOT SEEN THAT IN MARKET
RATES BUT WHAT DO YOU MAKE OF
ALL THAT?
>> I STILL THINK YEAR GOING TO
GET HIGHER INTEREST RATES BUT IS
GOING TO BE ONE OF THE THINGS
YOU WILL LOOK AT.
WILL YOU GET A BETTER RETURN IN
TECH OR OTHER ASSET CLASSES.
TECH WILL WIN.
I THINK WE SEE A DIP TOWARD THE
END OF THE YEAR AS PEOPLE CASH
OUT.
THE OUTLOOK FOR TESLA STOCK IS
DIFFERENT BECAUSE THE 42,000
BITCOINS TESLA OWNS ARE DOWN AT
THE MOMENT.
I THINK THAT IS BIGGER FACTOR
THAN SOME OF THE OTHER
MACROFACTORS.
NEIL: THAT IS INTERESTING.
>> INTERESTING.
NEIL: SUSAN, I’M CURIOUS, APPLE
ITSELF IS ITS OWN LITTLE
JUGGERNAUT HERE.
SOME WOULD CALL IT TECHNOLOGY,
ENTAINMENT MUTUAL FUND IN ONE
BUT RIGHT NOW IT IS CLOSING IN
ON $3 TRILLION MARKET VALUE.
WHAT DO YOU MAKE OF ALL OF THAT?
>> THAT IS THE OPPOSITE OF THE
TESLA TRADE, RIGHT?
WITH APPLE, YOU HAVE A STEADY
CASH FLOW, SOME CALL IT A BOND
TYPE OF STOCK.
YOU DO HAVE A CERTAIN AMOUNT OF
DIVIDENDS GIVEN OUT EACH AND
EVERY YEAR.
THEY BUY $100 BILLION WORTH OF
STOCKS EACH AND EVERY YEAR.
THAT IS THE MAIN REASON WHY IT
IS THE LARGEST HOLDING FOR
BERKSHIRE HATHAWAY AND WARREN
BUFFETT.
THINK ABOUT IT, APPLE AT
3 TRILLION THAT IS LARGER THAN
THE ENTIRE GERMAN EQUITY MARKET.
IT IS LARGER THAN THE UK
ECONOMY.
IT IS INCREDIBLE.
I WOULD PIN THIS ON TIM COOK,
THE LEADERSHIP UNDER ITS CEO,
WHEN HE TOOK OVER 10 YEARS AGO,
APPLE WAS ONLY WORTH
$350 BILLION.
IN THOSE 10 YEARS IT HAS GONE UP
TO $3 TRILLION, GONE UP 10 TIMES
DURING THAT DECADE.
REMEMBER WHEN HE CAME IN, RIGHT,
NEIL?
THEY SAID HE IS NOT INNOVATIVE.
HE IS NOT A STEVE JOBS.
HE IS A SUPPLY CHAIN TYPE OF
GUY.
IF YOU THINK ABOUT IT, YOU HAVE
HAD THIS iPHONE SATURATION.
FOR SOMEBODY TO STEP IN TO SAY,
WE NEED TO INNOVATE IN DIFFERENT
WAYS WITH SERVICES, THAT
INCLUDES APPLE TV, APPLE CARE
AND THE LIKE, NOW THAT DOUBLES
IN FOUR YEARS YOU HAVE TO GIVE
THE CREDIT TO THE CEO.
NEIL: WELL YOU KNOW, WE ALWAYS
BLAME HIM WHEN SOMETHING GOES
WRONG, RIGHT?
YOU MIGHT AS WELL GET THE
ACCOLADES WHEN THINGS GO RIGHT.
RAY, I’M WONDERING ABOUT THE
TECHNOLOGY, THE NEXT BIG THING,
THERE IS A LIMITED TIME FOR
APPLE TO RELY ON THE CORE
STRENGTH OF SO MANY BUSINESSES
AS SUSAN OUTLINED, ONE OF THINGS
WE TALK ABOUT IS THE NEW APPLE
GLASSES.
WHEN GOOGLE MADE THAT ATTEMPT,
THEY WERE JUST KIND OF DORKY AND
STUPID.
>> SNAP, RIGHT.
NEIL: RIGHT.
IS THAT THE NEXT BIG THING?
IT WOULDN’T BE THE FIRST TIME,
RAY, APPLE FOUND AWAY TO DO
SOMETHING RIGHT THAT OTHERS HAD
FAILED AT DOING, SOMETIMES EVEN
WHEN IT COMES TO THE EXACT SAME
THING?
>> YOU KNOW, NEIL, THAT IS A
GREAT POINT AND I THINK PEOPLE
ARE LOOKING AT A
4 TRILLION-DOLLAR MARKET CAP AS
THEY GET INTO CARS, AS THEY GET
INTO GLASSES.
THE GLASSES ARE AROUND A BIGGER
PART OF THE STORY OF THE
METAVERSE ECONOMY.
WE’RE SEEING REALITY WORLDS
COMING, GLASSES INTERFACES WILL
BE MUCH BIGGER THAN WE ARE
TODAY.
THAT IS WHERE YOU’RE SEEING
THAT.
WE’LL SEE WHEN THEY ACTUALLY
ANNOUNCE THOSE.
THERE HAS BEEN A LOT OF ATTEMPTS
FROM FACEBOOK, TO GOOGLE, TO
MICROSOFT.
GETTING AWAY FROM BULKY
HEADSETS, GETTING AWAY FROM
CORDS, A SHORT BATTERY LIFE WILL
BE IMPORTANT.
>> I THINK IT IS ARGUABLE THIS
IS THE METAVERSE WE’RE IN,
HAVING THREE DIFFERENT LOCATIONS
AND HAVING A CONVERSATION LIKE
IT IS REAL.
NEIL: YOU MEAN IT IS NOT REAL?
YOU GUYS --
>> AVATAR.
>> THIS IS MY AVATAR.
NEIL: YOU ROOK A LITTLE BLUE.
SO I CAN SEE THAT.
THANK YOU, GUYS, THANK YOU VERY