NEW YORK (TheStreet) -- The Nasdaq declined 1% on Monday, but the technology focus was on Apple (AAPL), which hosted its annual Worldwide Developers Conference. The most talked about feature was Apple's new music service, but with the revenue potential so small many think Apple is simply creating the service to retain its customers.
While that certainly is a plus, it's probably not the sole reason, argued Colin Gillis, financial director of research and senior tech analyst at BGC Research. He reasoned that if that were the case, Apple wouldn't have created the service for Android devices. This shows the tech giant is indeed focused on the revenue.
The company's raging success with the iPhone dwarfs the revenue opportunities from any of the services Apple creates, Gillis explained. For shareholders, that's okay because it's encouraging to see the company continuously improving its users' experience.
Gillis has a hold rating and $115 price target. That sits well with Tim Seymour, who said investors should buy the stock between $118 and $110. Seymour, the managing partner of Triogem Asset Management, is currently long the stock and finds it's attractively valued.
Karen Finerman, president of Metropolitan Capital Advisors, is also long the stock. While "nothing really blew me away," she said it's not worth the trouble and tax consequences to sell the stock if investors plan on buying it back shortly after.
Shares of Apple seem to be consolidating near current levels and are likely to trade higher, said Guy Adami, managing director of stockmonster.com. Elsewhere in tech, he thinks Facebook (FB) should trade higher and IBM (IBM) will trade lower. As for the S&P 500, he believes the index is poised to bounce.
"There's certainly a little bit of concern out there" when it comes to technology, according to Pete Najarian, co-founder of optionmonster.com and trademonster.com. Specifically, he pointed out the weakness in semiconductor stocks. A pullback in the broader market is starting to become concerning, he added.
While the S&P has struggled lately, Rich Ross, managing director at Evercore ISI, said a bounce seems likely as the index inches closer to the 150-day simple moving average. Global central banks remain accommodative and the merger landscape remains robust, he said. He's bearish on transport stocks like airlines, as well as the Energy Select Sector SPDR ETF (XLE).
The U.S. dollar dropped by more than 1% on Monday as reports surfaced President Obama was concerned by the currency's recent strength. The President later denied the reports. But it doesn't really matter because Obama doesn't control the dollar's value, said Dennis Gartman, editor and publisher of The Gartman Letter. Ultimately, the dollar has been overbought, accentuated by the big rally on Friday. "We're still in a long bull market for the dollar," he explained, saying he expects the euro to go lower and for the Japanese yen to go significantly lower.
The dollar is near the bottom of its three-month range, which could provide U.S. companies with a nice tailwind this quarter, Seymour added. Looking around the globe, he said investors can buy German equities on a slightly deeper pullback. The DAX has become "way oversold" and can be bought near 10,500, he said.
Turning to Tesla Motors (TSLA) ahead of Tuesday's shareholder meeting, Ben Kallo, senior analyst at R.W. Baird, raised his price target to $335. He expects the Model X to debut sometime in the third quarter, and for favorable reports and reviews to boost the stock. The company will be able to show investors it is capable of producing more than one model while expanding the brand's reach to consumers. The company's home battery system is also a huge revenue opportunity, he explained.
For their final trades, Seymour is a buyer of McDonald's (MCD) and Finerman is buying put options on the SPDR S&P 500 Trust ETF (SPY) for portfolio protection. Najarian said to buy Red Hat (RHT) and Adami is buying Proofpoint (PFPT).