Meta and Apple bullish case persists as inflation fears weigh on stocks
CNBC Investing Club cited Meta’s AI releases and Apple’s new foldable iPhone as support for its positive long-term view.
By Dev Ramirez · Crypto Correspondent
· 3 min read
The Meta Apple bullish case from CNBC’s Investing Club arrived after a rough, holiday-shortened week for major U.S. indexes. Rising oil prices and Treasury yields revived inflation worries, but the Club said new artificial-intelligence products at Meta Platforms and a foldable iPhone launch from Apple reinforced its favorable long-term view of both companies.
The Dow Jones Industrial Average fell 1.6% for the week, while the S&P 500 lost 0.8% and the Nasdaq declined 0.7%, CNBC reported. Each index gained nearly 1% on Friday, ending four consecutive losing sessions.
For investors, the immediate issue was the connection between energy costs, inflation and interest rates. CNBC said West Texas Intermediate crude rose more than 9% during the week after moving above $100 a barrel on Thursday. The 10-year Treasury yield also rose above 4.95% that day. Higher energy costs can add to inflation pressure, and the article said markets were weighing whether that could prompt the Federal Reserve to raise rates at its Sept. 15-16 meeting.
Why did inflation fears pressure stocks?
CNBC reported that the producer price index rose 0.4% for the month, while headline consumer prices rose 0.4% from the prior month and 3.4% from a year earlier. Core CPI, which strips out food and energy prices, increased 0.3% for the month.
Those readings were the last major inflation reports before the Fed meeting, according to CNBC. CME FedWatch odds of a September rate increase climbed to 87%, from 58% the prior week, the article said. Those odds reflect market expectations, not a decision by the central bank.
What is the case for Meta and Apple?
Meta released its Muse Spark 1.3 AI model on Sept. 2 and later introduced the Muse personal AI agent, CNBC reported. The agent integrates with Facebook, Instagram and WhatsApp, services the article said reach 3.6 billion daily active users.
The Investing Club argued that the releases strengthen the possibility that Meta’s large AI spending could produce assets the company can monetize. It also cited estimates that Meta trades at about 19 times projected 2027 earnings and that its Family of Apps revenue could grow 20%. Those figures and the conclusion are the Club’s analysis, rather than independent forecasts. Meta shares rose 5% during the week, CNBC said.
Apple, meanwhile, launched the foldable iPhone Duo with a starting price of $1,999, CNBC reported. The company also raised prices by $100 for the iPhone 18 Pro and Pro Max. Apple shares gained nearly 4% for the week.
CNBC said Apple CEO John Ternus described the iPhone as an “intelligent personal hub” and said an upgraded Siri could reach more than 300,000 apps. The Club’s view is that Apple’s ability to integrate AI into devices already used by hundreds of millions of people could help it compete in personal AI agents.
Readers should treat the conclusions as portfolio commentary. CNBC disclosed that the Investing Club had a buy-equivalent 1 rating on Meta and that Jim Cramer’s charitable trust trades under specified alert procedures. It also stated that the service creates no fiduciary duty and guarantees no profit or outcome.
This story draws on original reporting from CNBC.
