Monday Takeaways: Apple and Tesla Face Their Biggest Tests of 2025

Shah Gilani|June 9, 2025

Two tech giants are about to face their biggest tests of 2025…

Apple kicks off its developers conference today – and it better be a good one because the stock has been “in the tank” compared to other Magnificent Seven names.

Meanwhile, Tesla is preparing to reveal its robotaxi technology after getting “beaten up pretty darn hard” – especially with Musk’s public battle against the president adding fuel to the fire.

Both companies are at critical inflection points:

• Apple needs to prove it can innovate beyond the iPhone era
• Tesla must show robotaxi isn’t just another Musk promise
• Both stocks have massively underperformed tech peers this year

With the broader Magnificent Seven delivering 27.7% earnings growth, these two laggards can’t afford to disappoint.

I’ll break down what Apple must announce to reignite growth, why Tesla’s robotaxi reveal could be make-or-break for the stock, and how the Trump-Musk feud creates unexpected opportunities for savvy investors.

Click on the image below to find out which tech giant wins this crucial week.

Transcript

Everybody, Shah Gilani here with your Monday takeaways.

A little hoarse from a fun weekend cheering on a lot of sporting events, especially that tennis match at Roland Garros – it was unbelievable. Congratulations to Mr. Alcaraz. Just a phenomenal comeback.

Speaking of sports, how about the battle royale between the president of the United States and Elon Musk? It reminds me of the old days with Rock ‘Em Sock ‘Em Robots. They’re just giving each other uppercuts, and it’s ugly. So what’s to be taken away from that?

Well, number one, if you own Tesla stock, I think you’ve got a bit of a problem. When you’re going up against the president of the United States, who also can lean on government agencies that might want to create contracts or cancel contracts with the likes of your companies, including SpaceX, you might want to take notice. So for those of you who are Tesla fans, you got hurt pretty bad last week. This dust-up isn’t likely to get any better anytime soon. Let’s hope it does because I don’t think the country wants to be distracted, though it was rather amusing, I think, for a lot of people.

That being said, speaking of Tesla, it’s got an interesting week. They’re going to basically reveal some of their robotaxi stuff, and it better be good because the stock has gotten beaten up pretty hard.

Speaking of getting beaten up pretty hard, Apple has been beaten up. And today, Monday, starts Apple’s developers conference, which is a big deal. They come out with a lot of stuff, talk about a lot of stuff in the future, improvements they’re making to products, etc. And they better be good because Apple’s been in the tank, has not really performed very well relative to the other Magnificent Seven stocks.

And speaking of all of the Magnificent Seven stocks, generally speaking, their earnings have been fabulous. So when we look at earnings, the takeaway from earnings – which we’re pretty much done with, but they’re still trickling out – most of the bulk of the S&P 500 companies are out, and results were absolutely fabulous. Twelve-plus percent earnings growth.

The Magnificent Seven, by the way, had 27.7% earnings growth. Yes, that’s down from about 31% the previous three quarters’ average, but still pretty robust stuff. So the takeaway from that is, yes, tech is leading us higher.

What’s the takeaway from that? American exceptionalism remains.

What’s the takeaway from that? The stock market loves it, led by tech. Once again, we are 2.3% away from all-time highs in the S&P 500. We are 3.3% away from all-time highs on the Nasdaq Composite.

The bounce, the rally, the bull market off of the April 7 low has been absolutely stellar. Note to salespeople: The takeaway from that is when you see stocks rallying in spite of hurdles, in spite of all the walls of worry, that means stocks just want to go up. Does it mean they’re going to go up and continue to go up? No.

But I’m guessing they can. I’m guessing they will. That’s my bet. That’s where my money is. That’s why I’m telling my subscribers to go long. We’ve got a lot of stuff close to the bottom. We’ve been adding to positions, and we’re very happy with that. So the takeaway from that is for those of you who are like, “Oh my goodness, but if we all of a sudden don’t get a deal with China, we don’t get a deal with India” – both of which are on the table right now because some U.S. and Chinese delegates are meeting in London – the takeaway from that will be either really positive or a non-event or maybe some pushback. But the pushback isn’t likely to come because Chinese exports to the U.S. are about the lowest in five years. They want to arrest that nasty negative cascade.

So I think they’re going to want to talk a little bit here. The takeaway from that is if we get anything positive, then stocks have another reason to go higher. So there’s a lot of good stuff out there that can propel stocks higher.

On the downside, last month we saw the 30-year Treasury bond get to a 5.15% yield. Now we’re just below 5% now, but we’ve got a bunch of auctions coming up, and they’re always going to be in focus now more so than ever. The other things we have to worry about this week: We’ve got CPI on Wednesday. The Consumer Price Index on Wednesday is expected to be a little higher than maybe analyst estimates, maybe higher than people expect since the trend has been lower.

Will we see the impact in CPI from tariffs? That’s the big question. The following day, Thursday this week, PPI. Will we see the impact of tariffs and higher prices at the producer price level? So Wednesday and Thursday are going to be important days. If we get extraordinary pops in CPI and PPI, then the market could back off in here.

So those are the things we’ve got to be worried about. We’ve got to be worried about inflation still. We’ve got to be worried about tariffs because we’re not out of the woods there, and we’ve got to worry about rising yields and bond auctions. But the takeaway from that is, yeah, they’re always going to be a worry until they’re not.

Meanwhile, the stock markets, whatever measure you choose, are climbing the walls of worry. That’s the thing I focus on. I think that’s the thing you should focus on. So that’s the takeaway from last week, and this week will be how markets react to some of the news. If it’s negative and they go higher, stocks just want to go up. There’s your takeaway.

Catch you guys next week. Cheers.