Keith Fitz-Gerald, Chief Investment Officer at the Fitz-Gerald Group, recently appeared on Fox Business’s “Varney & Co.” to discuss his outlook on two prominent tech stocks: Apple (AAPL) and Palantir (PLTR). Fitz-Gerald labeled Apple as the ‘sleeper stock of 2025’, pointing to its massive installed base of devices and the looming upgrade cycles, particularly with around 300 million phones expected to be upgraded next year.
He highlighted that potentially 20% of the world’s population might access AI through Apple devices by next year, potentially boosting Apple’s earnings growth by 20 to 25%. When questioned about whether this growth would directly translate into stock price increases, Fitz-Gerald affirmed the correlation between earnings and stock prices over long periods, suggesting that Apple’s current under-the-radar status mirrors past underestimations at the iPhone’s launch in 2007 and the expansion of services in 2014.
Regarding Palantir, Fitz-Gerald expressed strong confidence in its stock, predicting it could reach $100 per share. He noted Palantir’s recent performance, having surpassed the $80 mark after his previous prediction on the same show when it was under $50. He emphasized Palantir’s unique ability to integrate and enhance outdated software systems across various sectors, including government and civilian applications worldwide, arguing that despite popular belief, Palantir’s valuation remains reasonable.
On a broader market perspective, Fitz-Gerald acknowledged the current rally, attributing it to a robust economy but cautioned that significant disruptions could come from escalating global conflicts or unexpected monetary policy shifts by the Federal Reserve. He specifically mentioned the potential for “black swans” from international tensions or a reversal in Fed rate policies as the primary threats to the ongoing market surge.
Discussing President Trump’s stance on Federal Reserve Chair Jay Powell, Fitz-Gerald avoided direct political commentary, focusing instead on the implications of Fed policy on market dynamics. He expressed a preference for market-driven adjustments over centralized control by institutions like the Fed, suggesting that markets might fare better without political interference in monetary policy.
Overall, Fitz-Gerald’s insights provide a bullish outlook on both Apple and Palantir, underpinned by expected technological adoption and operational efficiencies, while maintaining a cautious eye on external geopolitical and economic factors that could sway market directions.
Price Action: As of press time, Apple is trading at $246.84, experiencing a gain of 1.61% for the day. Meanwhile, Palantir is down 5.86% and currently trading at $71.87.
Leave a Reply