NEW YORK (TheStreet) -- The Dow Jones Industrial Average and S&P 500 both closed at record highs on Monday, starting the week off on a positive note.
Shares of Apple (AAPL) closed higher by 1.6% on its first day of trading following its 7:1 stock split.
Pete Najarian, co-founder of optionmonster.com and trademonster.com, acknowledged Apple's stock price usually rallies into product launches. However, the company isn't expected to launch any new products until September, meaning the stock could encounter weakness in July and August.
Tim Seymour, managing partner of Triogem Asset Management, argued Apple doesn't trade with an expensive valuation, and that's one of the key reasons why the stock continues to move higher as investors continue to buy shares.Steve Grasso, director of institutional sales at Stuart Frankel, called Apple one of the "cult stocks" for retail investors. He added that the stock seems unlikely to pullback to roughly $85. Colin Gillis, director of research and senior tech analyst at BCG Financial, was a guest on the show. Shares of Apple tends to back off following its presentation at the WWDC event, but did not this year. He suggested that perhaps the company is supporting the stock price with some of its $90 billion share buyback program.
Gillis said his main concern with Apple is that it is still very dependent on hardware, not software, and is still weak in its services business. He added the company's June quarter is historically the weakest earnings report, which could set up investors for disappointment. The stock isn't very expensive in valuation, he admitted, and Apple should have bought Spotify, which has 10 million paying subscribers, instead of Beats Electronics. Facebook (FB) is hiring PayPal's President David Marcus, who will become the former's chief of messaging. Guy Adami, managing director of stockmonster.com, said shares of Facebook should trade for $75 and "go higher" from current levels. Seymour pointed out that shares of eBay (EBAY), the owner of PayPal, has found support near $49. Using a sum-of-the-parts valuation, the stock is worth $60, he argued. Najarian said shares of eBay should continue to find support near $49. He praised Facebook CEO Mark Zuckerberg for remaining proactive by bringing in new talent and making acquisitions.