1. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Last year net income: $103.98 billion
Apple Inc. (NASDAQ:AAPL) is a global technology company that designs, manufactures, and sells consumer electronics, software, and services. Its core products include the iPhone, Mac, iPad, Apple Watch, and AirPods, along with operating systems like iOS and macOS. The company also generates revenue through services such as the App Store, Apple Music, iCloud, and Apple Pay. AAPL operates a global retail and online presence, offering seamless integration across its hardware and software ecosystem. It serves consumers, businesses, and developers worldwide, focusing on innovation, privacy, and premium user experiences.
Apple Inc. (NASDAQ:AAPL) delivered strong financial results for the latest December quarter, posting record revenue of $124.3 billion, a 4% increase YoY, and a record EPS of $2.40, which represents 10% growth. The company set all-time revenue records across various regions, including the Americas, Europe, Japan, and the rest of Asia Pacific, while gaining traction in emerging markets. Its Services segment achieved a new high with $26.3 billion in revenue, growing 14% YoY, and generated nearly $100 billion in revenue over the past year. AAPL’s installed base reached a milestone with over 2.35 billion active devices. iPhone revenue hit $69.1 billion, setting all-time records across numerous markets and regions. Mac revenue saw impressive growth, reaching $9 billion, up 16% YoY, and iPad revenue climbed 15% to $8.1 billion. The gross margin was robust at 46.9%, with Product margins at 39.3% and Services margins at 75%.
Looking ahead, Apple Inc. (NASDAQ:AAPL) anticipates low to mid-single-digit revenue growth YoY for the March quarter, despite a 2.5 percentage point impact from foreign exchange rates. The company is expanding its Apple Intelligence features, which have positively influenced iPhone sales in launched markets, and plans to extend them to more languages – including French, German, Italian, Portuguese, Spanish, Japanese, Korean, and simplified Chinese – in April. In emerging markets, AAPL continues to excel, particularly in India, where it achieved a record-setting December quarter and plans to open additional stores.
Overall Apple Inc. (NASDAQ:AAPL) ranks first on our list of the 10 most profitable large cap stocks to buy now. While we acknowledge the potential of AAPL as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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