Join Bill Gundersen and Barry Kite as they analyze a tumultuous day in the financial markets, differentiating the winners from the losers. They provide insights into the mixed performance of major indices like NASDAQ and Dow Jones, and delve into the catalyst events causing fluctuations, such as Microsoft’s downturn and Meta’s upward trend. The conversation pivots to a broader understanding of economic indicators, including the Federal Reserve’s recent decision and its impact on interest rates.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, thestreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 03 :
And welcome to the Thursday. It is the Thursday, January 29th, mega news edition of the Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I’m here with Barry Kite. I’m glad I’ve got him along, our chartered financial analyst, to pick through some of these earnings reports. And And big economic reports coming in today. Right now, we have the epitome of a mixed market today with the NASDAQ way down and the Dow up. And the NASDAQ is mostly being dragged down by Microsoft, okay? But on the other hand, Meta is a winner in the NASDAQ today. So it’s definitely a mixed market. The Dow is up 234 points. 49,250. Can we get to 50,000? A little train that could. Go, baby, go. The S&P is down six points right now.
SPEAKER 1 :
6,971.
SPEAKER 03 :
It did hit 7,000, I think. at one point, a couple points this week, but it’s at 69.71. The NASDAQ, however, today down 383 right now. I don’t like the way the software stocks are behaving. I’ve said that before. The Dow down 378. We’ve got the bond market quiet. Oh, let’s not forget there was a Fed decision yesterday, and interest rates up to 4.27. There’s no stopping gold. That’s another story. Bitcoin remains weak. So welcome to today’s Best Stocks Now show, which may be the busiest news day of the year so far in 2026. the 29th day into the new year. We had a quiet session yesterday, Barry, with the Dow flat, the NASDAQ up a little, but we had some big stock moves underneath the surface like Seagate and Micron and Western Digital, etc., Gold continues to be a major, major story, and it continues to move higher. Today, $5,500 and something, and silver, unbelievable. This run in precious metals is just absolutely incredible. And Barry, those aren’t the only commodities that are moving. You’ve got copper hitting a new high today and you’ve got oil starting to break out. So this could be a year of commodity performance out there.
SPEAKER 04 :
It seems if it gets dug out of the ground right now, it’s moving in an upward trending direction.
SPEAKER 03 :
Except for the rare earths. You know, they are volatile. The rare earth stocks are down today, big time. And I think the bottom line is, don’t call them rare earths because they’re easy to find. Most of these companies don’t even have, have not even found any yet. The prospects are good. But they’ve got to find the rarer. So you’ve got to just remember that segment of the market is very volatile and very speculative. And with all the things going on, really, the Fed meeting yesterday was quite boring when you put it up against all these other stories. He did what was expected to do, which is nothing, sitting on his hands, leaving interest rates where they’re at, still afraid of inflation, although there doesn’t seem to be any signs of it. I didn’t really go through any of his talking points yesterday, Barry. I don’t know if you had any time. No, the move.
SPEAKER 04 :
The most interesting thing, I think, was there was two dissents and Waller was one of them. So I was wondering if, you know, if one of those will be the next Fed chairman. Who was the other dissent? The guy that he added. I can’t remember. I’m sure I can’t remember his name. You know, the guy that the last member that that Trump added. It was one of his confidants that he put in there. But, yeah, he’s made the – I think he was a dissenter last time around, too. But, yeah, it was interesting to see Waller raise his hand as a dissent.
SPEAKER 03 :
If I was advising Trump, I would say pick Waller as your next Fed chairman.
SPEAKER 04 :
Yeah, you still have that sticker.
SPEAKER 03 :
Yes, bumper sticker on my car, Waller for president. The market’s boring reaction to the Fed’s pause, U.S. stocks flat. I usually look to the bond market after a Fed meeting. How is the bond market reacting today? Well, interest rates are up a little bit here today after the Fed meeting. Right now, people are wanting, what, 4.2? Where’s my notes there? 4.27 to invest for 10 years in a U.S. Treasury, which is on the high side, I think, in today’s world.
SPEAKER 04 :
Well, and that’s what’s hurt some of those. You mentioned some of the rare earths. That is long duration, and as interest rates have ticked up, those longer duration, higher P.E. names have waned a bit.
SPEAKER 03 :
There’s definitely a correlation between long-term stocks. You’re not going to dig tomorrow with a shovel and a pick. and a hammer and start getting rhodium out of the ground or molybdenum or whatever the case may be, it’s going to take some time. And those, by nature, make those long-duration stocks, which are very subject to interest rates. But I think that the probabilities are much higher of those long-duration stocks than, like, Test tube, you know, DNA, genetic mixing, and this kind of stuff. That seems not only long-term, but highly, highly speculative. It may never come up with anything. And it seems to me like the few rare earths that have really promising… fertile ground to uh explore might be a little bit more uh less speculative than the other so yeah i didn’t really see anything coming from the fed meeting that wasn’t expected uh and i don’t really see any rate cuts maybe maybe may june somewhere in there and it all depends upon uh the inflation and the jobs picture, and the jobs picture remained good here today. What did the initial jobless claims, which are a major indicator of a recession, There is no indication of a recession at this current point in time, I’m happy to report. What did the initial job claims come in at? It was $209,000, just above the $206,000 consensus.
SPEAKER 04 :
But, I mean, you got that moving average got up to, at one point it was around $230,000, $235,000 for a bit. And now, I mean, our four-week moving average is $206,250. Okay. And the other thing is that your weekly… Your continuing claims actually declined. It’s 1.827 million. It was 1.865, so some folks who had been on the sidelines got employed.
SPEAKER 03 :
That’s a good deal.
SPEAKER 04 :
And when we look at it, I think I saw something where productivity rose 4.9% in the quarter, kind of basically came in line, but labor productivity really dipped. during uh during covid and uh it’s great to see that productivity number come back because that’s how you really boost gdp it’s also how you how you can bring uh some input prices down i noticed i’ve been much more productive than normal i don’t know if that shows up in the in the government’s figures but uh showing up by necessity i’ve been more productive uh lately
SPEAKER 03 :
Now, hot spots in the world, the Armada heads for Iran. You know, that could be a big deal or it could not be a big deal. Oil is up. Four percent, up four percent today. Yes, that’s one of the biggest moves in a long time.
SPEAKER 04 :
Yeah, I wonder if that means, but gold’s flat. So I’m looking, I’m trying to think, is that an omen of, you know, with oil being where it is?
SPEAKER 03 :
We are semi-bullish on oil stocks, chosen ones for the first time in a long time. And I’ll tell you another hot spot closer to home. Cuba’s oil supplies are now seen lasting just 15 to 20 days as shipments dry up.
SPEAKER 04 :
And I saw something. I think Mexico announced that they’re stopping shipments. I don’t know what this shipment was, but my guess is it was oil.
SPEAKER 03 :
They don’t want our retribution. They’re afraid of what might happen to them. And, of course, with Rubio as our Secretary of State, I’m sure he has a lot of interest in this. seeing better days ahead for Cuba, but that could be quite tumultuous. Of course, they’ve had nothing but trouble keeping the lights on in Cuba and keeping those 52 Chevys and Fords running, getting the parts for those. But Cuba is totally dependent upon outside sources, so it almost seems like we’re putting a stranglehold on Cuba, as Ted Nugent said.
SPEAKER 04 :
Wouldn’t it be interesting to be able to bring them back into the realm of normal relations, right, just in terms of people and a country?
SPEAKER 03 :
Yeah, I mean, they’re like living in the 50s, right? And who knows, maybe there’s rare earth there. We don’t know. Okay, when we come back, at least the odds of a government shutdown are going down. That’s good. And we’ve got a lot of individual companies to talk about. Like Microsoft Tesla. How about Meta? We’ll be right back. And welcome back here to the second quarter of today’s Best Docs Now show with a lot of things going on in the world, in the country, in the market. On this 29th day of January, Trump-Schumer discussed potential deal on DHS funding. That seems to be the leverage term. that Schumer’s using. They want a little bit of de-escalation in the Department of Homeland Security. But the good news is the odds of a shutdown, which I think would happen this Friday if they weren’t able to come to some kind of agreement, have actually gone down considerably here as the two sides are continuing to come together. That would be nice. I like taking worries off of the table. I’ve got enough to worry about. without another government shutdown. Gold tops $5,500 per ounce. It’s just incredible. Now, you’re saying that it was up this morning. Are you saying that it’s finally starting? Let me get a quote here on gold. It was up this morning. Yeah, I think that’s down a percent maybe at the moment. Okay, gold right now. Yeah, you know what? They haven’t updated their Yahoo Finance. Yahoo Finance has got a problem there because they’re listing it as up. Right now, 1.77%. And it trades.
SPEAKER 04 :
It’s kind of tricky, too, because it trades, I think, 24-7, kind of like Bitcoin. I’m looking at one. It’s down $69, down 1.3% to $5,350, which still sounds like a lot by the way, $5,350.
SPEAKER 03 :
I’ve said it before, and I’m going to say it again. This has been a parabolic move in gold and silver, especially silver. Silver way more so than gold, even though both of them are parabolic. Parabolic moves in charts eventually do not end well. There’s going to be a time when a lot of the fluff, when a lot of the extra oomph and air in the tires has to come out. You saw that in Bitcoin when it got up to $125,000. And there will come a time when there’s going to be a pretty hefty correction and maybe a dose of sobering up amongst these giddy gold and silver investors. And we are a couple of those. We do own some gold stocks and the commodity gold itself in our stock. portfolios right now the key is going to be when to just say you know what the risk the reward the risk to reward level is now starting to favor the risk on the downside and and a lot of people are sitting on some big big profits now the mentality of all of this is people are giddy right now and there’s still people wanting to get in on uh… is it too late to jump on the bandwagon which i think it is the real question is when are a lot of these people that are sitting on huge, huge gains going to start saying, you know what, you know the old saying, pigs get fat, hogs get slaughtered. And so that’s one thing that I have to, as a money manager, that’s why looking at the charts every day, you know, you’re looking for a change in the momentum. You’re looking for a change in the psychology. You’re looking for people saying, you know what, I’m happy. I’ve been a pig and I feasted at the trough and I don’t want to try to be a hog. I’m going to take my profits here. And then what happens is that chart starts to level off, and then all of a sudden people start saying, you know what, I better get out while the getting is good. And then you could set off panic selling. So I’m just saying that’s how this stuff works.
SPEAKER 04 :
Yeah, and it’s kind of happening as you’re talking about it. I’m looking here, and the intraday high, all-time high yesterday was $56.08, and we’re sitting at $53.05 right now. Okay, so we’re down $100. That’s a 5.4% move from the high already. So that sets off a round of selling and profit-taking, right? Right.
SPEAKER 03 :
So that’s my job. That’s part of being a professional money manager is sitting here and looking at these things on a daily basis. And when is enough enough? So anyway, stay tuned, I guess. Tomorrow we’re going to get Apple. No, tonight. Tonight we’re going to get Apple. Like we didn’t get enough last night that we haven’t even begun. And tomorrow we’re going to get Chevron and ExxonMobil, which, hey, for the first time in a long time, I’m seeing some activity in the oil patch. Okay, we’ve got to begin today. I’m just going to say that the number one earnings report, who would it be, Tesla, Microsoft, or Uber? Or Meta. Or Philip Morris. Some would say Philip Morris. Don’t leave out IBM. How about MasterCard? That was important. Well, there were a lot of important ones. SAP, SAP, ServiceNow, all reporting. I’m going to choose Tesla. Just because it’s Elon Musk as the number one earnings report from yesterday, from last night. And I don’t think there’s any surprise whatsoever. And Tesla has sold off. I mean, Tesla has reversed course here. It was up, I think, last night. And now it’s down 2%. You know, auto sales are not good. They’re falling. They’re falling big time. And Tesla is going to have to rely on RoboTaxi. They’re going to have to rely on the cars, you know, the autonomy. And I see, too, that he’s investing Tesla money into his AI startup, Brock.
SPEAKER 04 :
Yeah, he made a $2 billion investment into XAI, and apparently they’re going to be doing you know, more collaboration across the two companies. So obviously it’ll be interesting to see how that, you know, kind of partnership works over time because, you know, you’ve got the overtones of self-dealing, right, because he owns both of the companies.
SPEAKER 03 :
But as an investor, aren’t you kind of happy that you’re getting, I mean, that’s going to be the vehicle that he’s putting Brock in, pardon the pun, but he’s putting into the Tesla part of his empire, right?
SPEAKER 04 :
Yeah, and like you said, I think that’s a good point. A part of it, a portion of it. A piece of Tesla before now, right? A piece of Tesla didn’t… People think that you own Tesla and you’ve got part of the rockets and you’ve got part of the boring company and you’ve got part of XAI. Well, now you actually do have a piece of XAI in there.
SPEAKER 03 :
So, you know, look, on the surface, Tesla’s earnings were down 17% year-over-year. Not good. Their sales were down 3% year-over-year, but the vast majority of this is the automobile side of Tesla. And, of course, Tesla’s facing, and we’ve said this many times, they’re facing decreasing demand. He didn’t do himself any favors by getting involved in politics heavily because he lost a lot of his core buyers of Teslas. He’s got way more competition than ever, and mostly from China. with Ford out there wanting to get at least some autonomous car and GM still wanting to go all EV, the vehicle side of Tesla does not look that good. But you’re investing in Elon Musk, and he’s going to bring other things into this Tesla story because it’s much, much more than an automobile company. It’s a technology platform. Don’t forget humanoid robots. We’ll be right back. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services… Call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 06 :
Call out the instigator because there’s something in the air.
SPEAKER 03 :
And welcome back here to the second half of today’s Best Talks Now show. There’s a lot not to like about Tesla. And, you know, I think, too, I think it’s become a long-term stock because their short-term stuff is obviously their car business. Which is definitely being degraded, I mean, with the competition coming into it and a lot of other different factors. And the other stuff is pretty long-term, really. The grok part of it, the humanoid robot part of it, and that could be one of the reasons it’s down today. The rise in interest rates. And I would also say this, Barry. No stock that I own is sacred. You’ve got to have to hold on to Tesla through thick or thin. You know that it went down 350 points when he went through the whole Doge thing. And you’ve got to watch it. I mean, we currently own Tesla. I expected this to be a weak quarter for the car business. The stock was up in the after hours, and now it’s down 2%. So we’ll just have to wait and see. But I always say you have to have a line in the sand underneath where you own a stock to where you say, you know what, I’ve got 20 slots or 30 slots in my portfolio here. Is this one that I want to hold at this current point in time? So we will be watching Tesla very closely going forward. Now, that’s the so-so report. The big report here is Meta. Now, I don’t know if it’s peeling back some, but Meta had a huge report, and that is one of the chosen ones currently that we have in our premier growth portfolio. By the way, we have seven vacancies right now. We own 23 stocks. Seven vacancies. We have seven vacancies. I’ve got a little sign, space available, apply within. I’ve had some people give me ideas and write to me and say, this is the one I would put in there, Bill. Well, we’re pretty picky. We have very high standards. We don’t just let anybody into that space. And so that amounts to about, what, 25% cash. But having said that, Barry, you’ve seen how the premier growth portfolio has done so far this year. It’s been pretty good. Shot out of a cannon. It’s just like shot out of a cannon, but, you know, what goes up, sometimes what goes up hard comes down hard. You’ve got to watch it. You always have to be on your toes. Okay, let’s go to Meta with our friend Zuckerbucks, who seems to be one of the top CEOs, whether you like the guy or not.
SPEAKER 04 :
And most people don’t like him.
SPEAKER 03 :
I don’t know if his wife even likes him. Well, I don’t know. But good old Mark Zuckerberg with his company once known as Facebook, now known as Meta. Let’s see what it is doing here. It was up 7% this morning.
SPEAKER 04 :
Yeah, up 7.17%.
SPEAKER 03 :
There you go. Okay, so that’s our big winner for the day. It’s in our largest portfolio, so it has a big impact on our overall assets under management here at Gundersen Capital.
SPEAKER 04 :
It always blows my mind just to gauge the pessimism that I think that folks have towards Facebook, even though they use it every day. And Zuckerberg is, you know what, the forward P.E. ratio is 23.6. I know. That’s pretty cheap.
SPEAKER 03 :
That is pretty cheap. But, you know, is it fair to say that it’s Facebook these days? It’s a heck of a lot more.
SPEAKER 04 :
Yeah, Instagram. Yeah, every, you know, the… The chat service, I think we ran the numbers a year and a half or two years ago when we wrote an article and it was what, 6 billion users a month or something?
SPEAKER 03 :
It’s an incredible number of people that go onto one of those sites in one way or another on a daily basis. And those eyeballs are worth a lot of money in the way of advertising, in the way he’s got his own AI initiative underway. And I evaluate Meta the same way that I would any other stock. And he’s had his ups and downs, too, as he’s transitioned away more and more from Facebook. And I always hear the argument, who uses Facebook anymore? Boomers, it’s only boomers on there.
SPEAKER 04 :
It’s all the other offshoots.
SPEAKER 03 :
Yeah. Instagram. Okay, the bottom line is this. The performance grade of the stock overall… When you look at the short term, the intermediate term, and the long term, and you grade it against all the other stocks out there, grade it on the curve, it gets an A performance grade. Not A+, but an A. Over the last 10 years, an investment in Meta, which at one time had a different symbol, FB, and it was called Facebook, and he got into the Metaverse and everything like that and kind of changed the direction. It’s averaged 21.7% per year. It has underperformed the S&P 500, which is 27.1%. Now, it’s fair to say, too, that the S&P has delivered. That’s an outsized return for the S&P 500 over the last 10 years. It’s usually more in the 13 or 14 range, but we’ve had an extraordinary decade. Now, over the last five years, however, since he’s kind of converted to meta, he’s beat the S&P 500. 19.9% average per year versus 17 for the S&P 500. So there’s a little bit of alpha in those returns these days. But wait a minute. Let’s look at the last three years. He’s had some sensational numbers, 64% per year versus the S&P 23.9. And we’ve always found it very attractive because of this recent performance and because of a relatively decent valuation on the stocks. And if I were to look at these fabulous seven, which I think Meta is one of the seven. I don’t know. It changes from time to time. But I think it’s one of the seven still. It’s the cheapest one of the seven. Look at Tesla’s P.E. ratio, 238 or something like that.
SPEAKER 04 :
Microsoft is in bear market territory today. Now it’s down 23% from its high.
SPEAKER 03 :
That’s what I’m going to talk about next and why we don’t own Microsoft currently. And the software sector in general is a little bit worrisome for the rest of the NASDAQ. But back to Meta. Good performance. Now let’s look at the valuation. So it passes my performance test for now, and it’s not hurting itself today with a 7% overall gain. When I look at this five-year valuation, which obviously looks forward, it’s one thing to look backwards, but it’s even more important in the market to look forward. That’s where my five-year valuations come in. I would just say of all the things I’ve learned in the market over the years, reading charts, judging past performance, learning what companies do, that valuation to me is still paramount amongst everything. What are the shares worth? When I take their earnings estimates, and extrapolate them out, the growth rate is 19% out there on the street, five-year growth rate. And when I apply a multiple, I get a five-year target price of 1,408, which is 112% upside potential. That’s about as good as it gets. I like 80% or more. Yesterday we did Boeing, and by contrast, Boeing had 43% upside potential. That ain’t going to cut it. And Meta has 112 as today. That’s an A-plus valuation grade. And its PEG ratio is 1. So its forward PE is 19.8 and its growth rate is 19. So just a little over 1 on that PEG ratio. Now, is 19 a doable number or 18 a doable number on growth? Well, let’s look at their most recent quarter. Their sales were up 24% year over year. Barry, that’s pretty sensational for a $1.8 trillion company to still tack on another 24% versus the same quarter last year. The earnings, however, were kind of the softest quarter they’ve had in a while. They were up only 11%, but they had a knockout quarter four quarters ago, which made the comparison very difficult this time around. But they still did double-digit earnings growth, 11%. And Meta is up 7.5%. It’s trading off of its high, but I would just have to say we’re happy with our Meta positions. and the performance after their report last night. Now we’ll get to the ugly when we come back, which is Microsoft and other software stocks. We’ll be right back.
SPEAKER 05 :
You’ve got to go where you want to go, do what you want to do, and win whoever wins.
SPEAKER 03 :
And welcome back here to the final segment of today’s Best Stocks Now show. Quick reminder on Phoenix and Houston. And I’m thinking it might be Sarasota after that. But right now we’re focused on February 23rd. We’re just about three weeks out now, Barry. I’m speaking in Phoenix at 6.30 p.m. at the Sun City West Retirement Community there at the auditorium that they have. And they told me I could invite people from our show there in Phoenix every day on Salem’s Big News Talker. I’ll be speaking at 6.30 p.m. and doing an hour and a half workshop for an investment club out in that neck of the woods. And then on the next day, flying to Houston. And Houston, the 25th and 26th of February, I’ll be doing a workshop at 7 p.m. at the Westin Galleria in Houston. on the February 25th, Wednesday. And then on Thursday, both Wednesday and Thursday, all day long, we’ll be sitting there meeting with folks that want to meet with us. We have one-hour appointments available, space available. Call Edie at 855-611-BEST to book a prime spot now. before they are gone, and or a spot for the workshop, whether it’s in Phoenix on Monday, February 23rd, or on Wednesday in Houston, February 25th. And those one-hour appointments, again, E.D. 855-611-BEST, or go to our website and indicate your interest there, gundersoncapital.com. Now, this last segment of the show, I’m going to have to go pretty quickly here, but there’s a lot to be said. I sent out an alert on January the 21st, eight days ago. We don’t own Microsoft. We sold it. But I could not help but notice how ugly that chart was getting. And I sent out a chart because I know a lot of people own Microsoft. I said software stocks continue to get pounded, even Microsoft. Right.
SPEAKER 04 :
Even Microsoft.
SPEAKER 03 :
Even Microsoft. Ugly chart. And I showed a chart of the stock. Now, things have only deteriorated since then. Number one, Barry, pull up a chart of IGV, which is one of the few software ETFs. Ugly, ugly, ugly. And why do I even bring this up? Because software is a big part of the tech sector. It’s a big part of the NASDAQ when you’re talking Palantir. How’s Palantir doing, by the way? We unloaded that. That’s an ugly chart on Palantir. Ugly. And it was the market leader in the software sector. And had the highest P.E. ratio at 1.2 in the S&P. Yes. Ugly chart. Palantir’s getting pounded today, down 6.3. ServiceNow, which is probably one of the top five software stocks, down 11%. Does this mean that the NASDAQ’s in trouble?
SPEAKER 04 :
Can the chips… CRM, down 8% today.
SPEAKER 03 :
Horrible. Horrible. You know, I looked for an ETF that just picked on the software stocks on the inverse side. I could have made a fortune in it if there had been one. There wasn’t one. But there is obviously NASDAQ and tech-related, but that covers the whole gamut. It doesn’t just pick on the software sector. But I could see this coming in the software sector.
SPEAKER 04 :
I mean, with today’s move down 12%, Microsoft, like I said, they’re down 24% from their 52-week high of $555. Yeah, look at Oracle. Oracle down 5.2%. Now, my worry is it’s going to drag down the whole NASDAQ.
SPEAKER 03 :
because this is not an insignificant sector in the market. I mean, you’ve got Palo Alto Networks. You’ve got CrowdStrike. You’ve got CloudFlare, Palantir, Microsoft, Adobe. They’re all getting pounded. It may be time for a little hedge against the NASDAQ. Yeah, crowds down 7%. There you go. So anyways, we have to bring this to your attention. And thank goodness that we sold Palantir. I had some people say, I disagree with your Palantir sell. I said, well, you know what? I have a big profit. And I don’t like the way that the sector is trading. And I have found through my 25 years of watching the markets, it’s just a matter of time when a sector goes south. it eventually gets to the core stocks in the sector. It infects the whole sector, right? I mean, it’s just interesting.
SPEAKER 04 :
You’ve got Meta in the tech world today. It’s like Meta up and everything’s around it.
SPEAKER 03 :
Yeah, everything else. Yeah, and I don’t know that I would call Meta a software stock. It’s more of a platform. But, you know, it’s almost like COVID. Eventually, even the healthiest guy in the neighborhood gets it when that contagion is going around and that virus is going around and there’s a virus going through the neighborhood. through the software sector that has now gotten to the two leaders, Microsoft, which has been soft for quite some time. Microsoft’s been cut in half very quietly since September. NASDAQ’s down 2.3% right now. Yeah, and remember when Microsoft, well, let’s see. No, maybe not half. I was looking at Oracle. I’m sorry. Microsoft has gone from 553 to 423. So it’s down 25%. And remember when Microsoft was running with the PAC and $4 trillion? It’s down to $3.1 trillion now.
SPEAKER 04 :
You had them in that – remember that article you wrote where it was the horse race, right? And it was NVIDIA, Microsoft, and Apple, I think, if I’m not mistaken, in terms of the three that were going for the most valuable company in the world.
SPEAKER 03 :
Yes. Okay, now – Having said that, there’s two sides to this story in the final minute I have with everybody. This may turn into a value slash relative value play. I mean, their quarter was not that bad. Their earnings were up 24% and their sales were up 17%. That’s pretty robust for a company that size. So I’m not writing it off. There’s been many times in Microsoft’s history when it looked down and out, and it came roaring back. So two sides to every story. That’s where valuations come in, and that’s where the charts come in. But right now, the chart on Microsoft is as ugly as it gets. is caught up in a terrible contagion and virus that is going through the entire software sector, and it could spread to the semiconductor sector. I’m just telling you. And don’t forget, there are some hedges against the NASDAQ out there. PSQ comes to mind. Well, this has been fun. We’ve got some more. We’ve got Apple to talk about tomorrow. I’ve got about 1,000 charts to look at today. It’s all good. Give us a call at 855-611-BEST if you’d like to set up an appointment with us or follow along with the newsletter, GundersenCapital.com. Have a great day, everybody.
SPEAKER 01 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
Join Bill Gundersen and Barry Kite as they analyze a tumultuous day in the financial markets, differentiating the winners from the losers. They provide insights into the mixed performance of major indices like NASDAQ and Dow Jones, and delve into the catalyst events causing fluctuations, such as Microsoft’s downturn and Meta’s upward trend. The conversation pivots to a broader understanding of economic indicators, including the Federal Reserve’s recent decision and its impact on interest rates.
