10 Best Stocks to Invest in According to Billionaire Cliff Asness

2. Apple Inc. (NASDAQ:AAPL)

AQR Capital Management’s stake as of Q3: $1.87 billion

Global tech behemoth Apple Inc. (NASDAQ:AAPL) is well-known for its flagship devices, which include the iPhone, Mac, and Apple Watch, as well as its extensive network of services, including iCloud and Apple Music. Given that there are about 2.2 billion Apple devices around the globe, the company has a large platform suitable for launching its AI services.

On January 6, Evercore ISI reaffirmed its Outperform rating on Apple Inc. (NASDAQ:AAPL) stock, maintaining a price target of $250. Analysts noted that App Store revenue grew by 13% in December, down from November’s 17% growth. However, the App Store’s December quarter performance still delivered a 15% growth rate, surpassing Evercore ISI’s initial forecasts. This stronger-than-expected showing is anticipated to bolster Apple’s overall services revenue, where the App Store and payments from Google (NASDAQ:GOOGL) remain key contributors.

In the fourth quarter of 2024, Apple Inc. (NASDAQ:AAPL) posted a revenue of $94.9 billion, marking a 6% increase compared to the same quarter the previous year. Product revenue reached nearly $70 billion, up from $67 billion in the same period in 2023. Moreover, the company reported an operating cash flow of $27 billion and paid $29 billion to shareholders.

In its third quarter 2024 investor letter, Madison Investments said the following regarding Apple Inc. (NASDAQ:AAPL):

“Alphabet Inc., Eli Lilly and Company, Qualcomm Incorporated, Microsoft Corporation, and Apple Inc. (NASDAQ:AAPL) were the largest detractors. Apple has been volatile in the last quarter but ended on strength. Early in the quarter, Apple benefited from the introduction of their AI strategy, Apple Intelligence. They followed in September with the new iPhone 16, which also created some excitement. We are underweight to Apple, which has resulted in a headwind for performance.”