Mailbag: Why Tech Is a Bubble and Is it Really Time to Dump Apple?

Happy new year, welcome to my first mailbag of 2021! I hope everyone had a delightful holiday season. I’m sure many of you are ready to put a bumpy 2020 behind us and start fresh in the new year…

This is a great feature where I can answer your questions about some of my recent videos, picks and pans. 

Those who follow me regularly know I’m big on drone tech and drone tech stocks. In a recent video, I said to avoid AgEagle Aerial Systems Inc. (NYSEAmerican: UAVS), and I got a couple of good follow-up questions on this topic.  

Mailbag: UAVS, Apple, Big Tech and More

How does this compare to UAVS? Both seem to be military stocks. UAVS main focus was agriculture but now currently moved to manufacturing of drone delivery. And drone delivery will be the next big thing… thanks to covid.

— danny25705

I thought UAVS was partnering with Amazon?

— Carlos Paiz

Two good questions I tackle in my short video down below. 

Switching gears, I also did a recent video about Apple Inc. (Nasdaq: AAPL) and its so-called “Apple EV,” an electric vehicle the company is reportedly exploring. I suggested selling the stock on this news because I don’t think an Apple EV is the best use of shareholders’ money. 

Apple shares are already at record highs, so it’s a great opportunity to sell the stock at a great price. My friend Mike took issue. 

Apple is still expanding and is going to be a leader in 5G. It is expanding into India. This seems extremely bullish? I see this better than MSFT (Microsoft).

— Mike G

Mike, I don’t disagree. The company is expanding its iPhone dominance. It has many markets around the world where it could potentially expand. But is it “extremely bullish?” That’s where we disagree. Check out my video below and I’ll explain why. 

And finally, my last question came from Janice after she watched a recent video of mine where I said I believe the current market — particularly the tech sector — is a bubble. 

Let’s get to the meat of Janice’s question: 

I have funds invested and need to make changes so looking at  Fidelity Global Innovators Class Fund it holds a basket of stocks. Information Technology 53%, Consumer discretionary 17%, Consumer Staples 2.05%, Communication Services 12.9%, HealthCare 10.10%, Materials 2.64%, Energy 1.56%, financials .18% and remaining .20% not shown. Top 10 investments held with this fund are MS, APPL, Alphabet, Roku, Shopify, Slack Tech, Micron Tech, Dynatrace and Elastic. Based on your latest thoughts about tech and overpriced stock market, is there any potential here for returns over the next two quarters? If not where would you look to park money at this time, to maximize profits without directly going into stocks. Look forward to your response.

— Janice

There’s a lot to unpack here. My opinion is that there’s a lot less potential than a year or two ago, simply because so many tech stocks are so highly valued relative to the profits they earn. 

Check out my mailbag video and dive into these great topics in full detail. Then share your thoughts in the comments below. 

And as always, send your investing questions to jeff@yastine.com. You can also follow me on Twitter and Facebook.

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