5 Stocks At Risk From Slowing Chinese Economy

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1.  Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 128

Apple Inc. (NASDAQ:AAPL) is a diversified technology company. Chinese consumers have shifted to premium phones in recent months, amid a decline in popularity of Huawei, a local smartphone brand, that is being replaced by Apple in China. A slowdown in the Chinese economy will impact this sales momentum for Apple just as it is preparing to release a new iPhone to the market. The firm plans to build 52 million iPhones in the third quarter, up over 8% year-on-year. 

On August 19, KeyBanc analyst Brandon Nispel maintained a Buy rating on Apple Inc. (NASDAQ:AAPL) stock and raised the price target to $185 from $177, noting that the firm was off to a strong start in the fourth fiscal quarter. 

At the end of the second quarter of 2022, 128 hedge funds in the database of Insider Monkey held stakes worth $143 billion in Apple Inc. (NASDAQ:AAPL), compared to 131 in the preceding quarter worth $182 billion.

In its Q2 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Apple Inc. (NASDAQ:AAPL) was one of them. Here is what the fund said:

“Apple Inc. (NASDAQ:AAPL) grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple Inc. (NASDAQ:AAPL) is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.”

You can also take a peek at 10 Stocks Reddit’s WallStreetBets is Buying in July 2021 and Top Robinhood Stocks Popular on Reddit.

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