00:00 Speaker A
Big tech stocks under pressure a bit mixed this morning after getting a big boost from the Trump administration’s temporary tariff reprieve for tech products. That sent Apple back above a $3 trillion market cap on Monday. Joining us now with more Dan Ives, Wedbush Securities Global Head of Technology Research. Dan, great to have you back with us. The last time we spoke, you said these tariffs were causing an economic Armageddon that would set US tech back many years and now we’ve got Apple hitting above $3 trillion. Where do you sit with your outlook on tech today given these negotiations?
00:34 Dan Ives
Yeah, that was a dark day. I mean, me and you and Julie were talking and I think we’re in a better situation today than we were then because these tariffs it gives a one to two month, you know, pause or exemption, whatever you want to call it. And that’s also room for negotiation with China. So I think investors are viewing this as kind of breathing room. You’re still not going to see any sort of guidance in terms of, you know, earnings and earnings season, but I think this is definitely a step off the cliff relative to where we were the last week.
01:23 Speaker A
Uh Dan, I I caught I caught a lot of flack from a lot of my followers on that dark day because look, I I was overseas, I was living my best life or at least trying to while this was all folding unfolding and I’m paying attention to it at night and I listened into you guys’s interview and even as you’re thinking through your coverage universe right now, how many of those names within your universe are still in this twilight zone because that’s how you titled your most recent note around Apple as well.
02:15 Dan Ives
I mean look, if you assume that these ultimately stay in effect, then you never would be bullish on another tech stock, you know, for the rest of the year. I mean, so our view is is that it’s going to get negotiated to something much more containable. And that’s something that tech companies, auto companies from Tesla to GM to basically every tech company in the supply chain is dealing with. But the reality is that the industry spoke, the 10-year spoke, the dollar spoke, and then they need to come back. They need to come back to some sort of area that they’re going to be able to negotiate in terms of the White House and I think that’s how the market’s reading this.
03:49 Speaker A
And it sounds like you’re reading it like these negotiations will take place for tech. To what degree do you think that there is a Trump put in US tech stocks?
04:11 Dan Ives
I do think there is. I I think ultimately, you know, lot of you go back the last two weeks and I told you look, 25 years doing this.com bubble, financial crisis, COVID, and everything in between. It’s the craziest two weeks that I’ve seen in my career. And scariest relative to what it could have done to the US tech sector and still what we’re dealing with, but I do believe like the market spoke and industry leaders spoke and there’s no alternative. And now I’m not saying, do you still need some onshoring, reciprocal tariffs at some minimal level? Yeah. But in its current form, it couldn’t stay in at this pace. And I think that’s just the reality of the situation instead of just behind a microphone, the by way, that this is the reality of what the industry is seeing.