Trade Tracker: Joe Terranova sells Apple

Speakers

Scott Wapner — Host

Joe Terranova — Senior Managing Director, Virtus Investment Partners

Summary

Joe Terranova reveals he exited his Apple (AAPL) position after holding it for only one day, citing a failed momentum signal and strict risk management (stop-loss at 264).
A key fundamental divergence is highlighted: The "Big Four" Hyperscalers are increasing AI CapEx by 40% YoY, while Apple's CapEx is down 20% YTD, raising concerns about Apple's ability to compete in the AI cycle.
Contrasting this bearish price action, host Scott Wapner cites analyst Dan Ives, who argues the Apple sell-off is unwarranted and that 2026 will be the year Apple finally capitalizes on AI.

Trade Ideas

Ticker	Direction	Speaker	Thesis	Time
GOOGL /AMZN /MSFT	LONG	Joe Terranova Senior Managing Director, Virtus Investment Partners	"Hyperscalers, the big four, they're increasing their capex by 40% year on year... They will put a tangible product in the hands of consumers." While questioning the efficiency of the spend, Terranova contrasts these firms against Apple, implying they are the ones actively building the Generative AI future and delivering tangible utility to consumers, whereas Apple is retrenching. LONG (Relative strength vs AAPL). Over-spending on CapEx without immediate ROI ("Is all this spending actually necessary?").	2:34
AAPL	LONG	Scott Wapner Host, CNBC	Citing Dan Ives: "The sell off in Apple is unwarranted. That 2026 will be the year Apple finally gets into the AI game." The current price weakness is a buying opportunity, as the market is underestimating Apple's upcoming entry into the AI sector later in 2026. LONG. Continued CapEx lag and lack of immediate AI products could dampen sentiment further.	0:12
AAPL	AVOID	Joe Terranova Senior Managing Director, Virtus Investment Partners	"I gave everyone a 264 stop... I got stopped out... I'm trying to, in this environment, keep my losses tight." The trade was based on a short-term momentum signal (Feb 11) which was neutralized by macro events (Powell speech) the next day. Fundamentally, Joe is concerned that Apple is cutting CapEx (-20%) while competitors are ramping up (+40%), suggesting they are behind in the AI infrastructure race. AVOID (Sold position). Dan Ives' thesis that 2026 is Apple's "AI Year" could prove correct, making this a premature exit.	0:12
TWLO	AVOID	Joe Terranova Senior Managing Director, Virtus Investment Partners	"Did the same thing with Twilio." Like Apple, this was a systematic momentum trade that failed. Terranova applied strict discipline to limit losses to ~4.5% rather than holding through the reversal. AVOID (Sold position). Momentum signals could re-ignite if broader tech sentiment improves.	—