Well, the first stock is pretty easy. It's Apple (AAPL) - Get Report and I would just say own it, don't trade it, for no reason. Apple is a company that sells at a market multiple next year. That's right, 2022. In 2022 Apple is valued as an average stock, in part because people think that next year can be an up year, but they don't think it's going to be that good.
I think that's wrong. I think that Apple's got good post-pandemic cyclicality coupled with the secular 5G growth stream. See, you members got to have both. That, to me, makes it a keeper. And by the way, I would not be afraid to cut and run if even Apple didn't fit into the worldview. Good cyclical nature coming out of the pandemic, secular growth, 5G.
Now because it has so much business in plain old PCs, it's been selling down, as PCs, especially notebooks, which are down 9% in sales, are work-from-home, stay-at-home. And that's a definite nonstarter, as I told you.
But AMD is buying Xilinx (XLNX) - Get Report, and when that deal closes PCs will be a much smaller part of the company than now, and that will allow it to have an up 2022 of perhaps major league proportions. Plus Intel (INTC) - Get Report, despite what the company keeps saying, is nowhere.
And, yes, is it bothering me right now that the stock is down a buck? Yes! It's killing me! And Intel keeps saying that they're going to pass AMD any minute. That's nonsense. There's a string of cities in Italy that Lisa Su names all her products after. She's going to Genoa, she has Milan. They are in Rome, which was the first one.
Now, if AMD were not buying Xilinx, so then I would have said let's take a loss on the stock. I'm not averse to that. You know, we take some losses, but some of the losses we've taken, of course, looking back, were mistakes. Am I digging my heels with AMD? I'm saying I'm doing more work than anybody else with AMD, and I like it.
Amazon. (AMZN) - Get Report Amazon is a secular grower because of Amazon Web Services, but with the consumer spending/advertising cyclical kicker. By the way, of course, they wouldn't be adding new people furiously if they were doing badly. But it's down and I'll explain.
It's down because a lot of people feel it is a stay-at-home work-at-home stock like AMD. I think they're wrong. They’re wrong about Amazon, too. I don't think it's really a lockdown stock. But the reality is if you read the last quarter’s report, you would know there is more happening at this company right now than any other in the universe, and it's all positive.
And you cannot sell Amazon. If anything, club members who do not own Amazon – Amazon was up 33 yesterday -- so if you don't own Amazon, you're going to get your chance soon.