What’s the Right Price to Buy Apple, Nvidia and Meta?
The three tech giants are trading well off their highs, but when will they bounce back? Let's go the charts to find good entry points.
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For the longest time, it seemed as if good news and bad news alike were bullish.
This week, we saw the markets react negatively to good news on inflation. Both the consumer price index (CPI) and the producer price index (PPI) for February showed inflation growing at a slower pace than in January. In both cases, the inflation rate also came in below expectations.
Inflation slows the FOMC in its pursuit of lower interest rates. Lower rates make stocks more attractive relative to fixed-income investments, which is good for the stock market. The CPI/PPI news was objectively positive, but stocks sold off anyway.
What’s going on?
Institutions, which have been accumulating large-cap tech stocks for years, have decided to reduce their exposure. While the effect of this selling is negative for the markets, there is a bright side — it gives buyers a lower entry point.
How can we find good entry points for three major tech companies? Let’s go to the charts.
Apple
Shares of Apple AAPL have fallen for four straight days, losing 11.5% in the process. Over that same stretch, the Nasdaq Composite fell 4.5%, and the S&P 500 lost just over 4%.
Why is Apple falling? Investors are concerned about the fallout from U.S. tariffs, particularly in China.
Investors are following Warren Buffett’s lead and lightening up on the stock. Buffett’s Berkshire Hathaway BRK.A BRK.B holding company has sold about two-thirds of its Apple shares.
What's the right price to buy Apple? The stock caught a strong bid at $196 (green arrow) shortly after reporting earnings in August of last year. A buyer stepping in at $196 could buy Apple about 25% below its all-time high.
Nvidia
Shares of Nvidia NVDA, the Santa Clara-based, AI-focused chipmaker, are off to a rough start in 2025, falling 16% year-to-date. What's the right price to buy the former high-flyer?
Nvidia is currently trapped in a bear channel (black dotted lines), with the low end of that channel projected at the $100 area. This is the same price area that saw the stock bounce after a selloff in September (green arrow).
If Nvidia falls to $100, buyers will be able to pick up the stock at a 33% discount from its all-time high, set in January.
Meta Platforms
All of the major U.S. stock indexes are currently trading below their respective 200-day moving averages. Six of the seven stocks collectively known as the Magnificent Seven are also trading below that key indicator.
The one exception? Meta Platforms META.
Not only is Meta still trading above its 200-day moving average (red), it hasn’t fallen below that indicator in over two years. By maintaining its position above the 200 MA, Meta is showing some serious relative strength.
Where would I buy Meta Platforms? On a pullback to that same indicator, currently located at $569.
I’m not predicting that any of these names will pull back further. If they do, these prices would make great entry points for new positions, or to add to existing positions.
At the time of publication, Ponsi was long AAPL.
