With the U.S. GDP growth at a measly half percent, the markets are following suit and seeing “no real positive” momentum either, according to Shah who joined Varney & Co on Wednesday. He weighed in on the overall “nervousness” that he believes has set in the economy and advises investors on how to hedge their investments against the upcoming volatility.
Despite this lackluster growth, there’s one tech powerhouse that’s on track to become the first trillion-dollar company. In fact, it just launched a “newsfeed” on its ever-successful platform but it’s censoring content in order to appeal to its huge audience – an audience that makes up one quarter of the world’s population. Now, Shah believes that this decision will not negatively affect its stock price or even its revenue targets instead he believes this company is “going to the moon.”
Shah still backs Apple even with the $500 billion company not meeting Q1 earnings expectations. In fact, he said “from the great dividend to the healthy cash flow, everything about the company is good,” and “there’s no reason the stock can’t go a lot higher.” He has placed a new stock price prediction that he believes it can reach “easily.”
Tesla’s widening losses despite its 6-fold growth over the last few years “confounds” Shah. But he has his eye on another car company whose success is on track to “explode,” especially when its new relationship with China – the biggest auto market in the world – takes form.