Why Apple is Going to $400 | WAYT?

Summary

Josh Brown makes a bullish case for Apple reaching $400 on iPhone sales and AI services monetization. Michael Batnick warns against memory semiconductor stocks at extreme valuations and presents Hyatt as a luxury hotel play. The hosts also discuss the historically strong earnings-driven bull market, the importance of index construction for value and emerging market ETFs, and the HALO trade theme.

• Josh Brown is bullish on Apple (AAPL) with a $400 target, citing iPhone momentum, AI services toll-booth model, and foldable phone launch.
• Michael Batnick advises avoiding memory semiconductor stocks (Micron, Western Digital, Seagate) due to extreme valuations and peaking growth.
• Michael Batnick makes the case for Hyatt (H), repositioned as a luxury hotel company catering to high-income travelers.
• Josh Brown is also bullish on Tesla (TSLA), expecting a move to $500 driven by robotics and a potential SpaceX buyout.
• The S&P 500 is in a historically strong earnings-driven bull market, with double-digit growth for two consecutive years rarely leading to declines.
• Over 50% of tech stocks are in a bear market despite index highs, and memory names are experiencing steep drawdowns from lofty levels.
• Index construction differences are creating huge dispersion in value and emerging market ETFs (e.g., VLU vs Vanguard value, IEMG vs VWO) due to Korea’s classification.
• The HALO (heavy assets, low obsolescence) trade has been a key theme in 2025, but lacks a single investable vehicle.