11 Best Reddit Stocks to Invest In

3. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 166

Analyst at Goldman Sachs, Michael Ng, gave a “Buy” rating on Apple Inc. (NASDAQ:AAPL)’s stock, with a consistent price target of $294.00. The firm’s stance was a result of the company’s introduction of the new iPhone 16e, which is the latest in the more budget-friendly iPhone SE lineup. The iPhone 16e debuts as the first smartphone incorporating Apple Inc. (NASDAQ:AAPL)’s own C1 cellular modem, hinting a strategic move. Despite the iPhone 16e’s higher-than-expected entry price of $599, Goldman Sachs believes that the launch is a positive step.

Notably, this new pricing is regarded as the potential driver for upgrade demand as well as sustained growth in Apple Inc. (NASDAQ:AAPL)’s customer base. Furthermore, the company’s services segment revenues are expected to see a strong growth due to the expanding installed base of Apple devices as well as increased user engagement in the Apple Inc. (NASDAQ:AAPL)’s ecosystem. Furthermore, the growth in services can also enhance the value proposition of the company’s hardware products. With users becoming more deeply integrated into Apple Inc. (NASDAQ:AAPL)’s ecosystem with the help of various services, they are expected to remain loyal to the brand.

Columbia Threadneedle Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“The fund maintained a position in Apple Inc. (NASDAQ:AAPL) throughout the quarter through the release of the company’s new iPhone 16 in September. Company leaders were excited about the release of the new model, as this is the first model that will feature enhanced AI capabilities through the Apple Intelligence features. Sales for the first few weeks in October and November trailed behind year over year sales from the iPhone 15, as availability of Apple Intelligence was not compatible with all iPhone models. Apple announced a partnership with OpenAI that has allowed the integration of ChatGPT into the Apple ecosystem, separate from the core Apple Intelligence features. This partnership highlights continued progress from Apple to introduce AI capabilities into its products and we expect the iPhone 17 to have even more expansive AI capabilities, increasing potential demand for the new model that is on track to be released in 2025.”