Apple, Alphabet Among Welch Capital’s Favorite Tech Stocks for Q3

#3. Pandora Media Inc (NYSE:P)

– Shares Owned by Welch Capital Partners (as of June 30): 828,530

– Value of Holding (as of June  30): $10.32 Million

Welch Capital reduced its holding in Pandora Media Inc (NYSE:P) marginally during the April-June period, by 7,940 shares. Shares of the music streaming company are currently trading flat for 2016, but significantly lower than the highs they made in early-2014. The company is currently facing tremendous pressure from activist investor Keith Meister‘s Corvex Capital, which recently petitioned to increase its stake in the company to 14.99% from 9.99%, so as to explore strategic options. In May, Corvex sent a letter to Pandora Media Inc (NYSE:P)’s Board asking it to “engage an independent investment bank with a fresh perspective and without any prior history of advising the company to advise on a value maximization process.” Most analysts who track the company aren’t too optimistic about its future prospects including analysts at Mizuho, who on August 4 reiterated their ‘Neutral’ rating and $11 price target on the stock, which represents potential downside of 17.35%.

#2. Apple Inc. (NASDAQ:AAPL)

– Shares Owned by Welch Capital Partners (as of June 30): 115,557

– Value of Holding (as of June  30): $11.05 Million

Apple Inc. (NASDAQ:AAPL) jumped 13 spots in Welch Capital’s equity portfolio during the second quarter to become its eighth-most valuable equity holding at the end of June after the fund increased its stake in the company by 67% during the period. Apple Inc. (NASDAQ:AAPL)’s stock has been hugely volatile this year, trading in the $89-$113 range. Nevertheless, it is currently trading flat year-to-date, owing to the recent gains it has enjoyed following the company’s third quarter of fiscal year 2016 earnings release. On August 12, the company acquired Seattle-based artificial intelligence and machine learning startup Turi for around $200 million. While some analysts think that Apple will be using Turi’s AI platform to improve its personal assistant software Siri, other analysts feel that this is a strategic acquisition that will help Apple to accomplish its long-term goal of becoming a cloud player. On the same day that it announced the acquisition, Bloomberg reported that Apple is planning the first significant overhaul to its line of Macbook Pro laptops in more than four years. Currently, most analysts and investors are eagerly waiting for the next iteration of the company’s main revenue driver, the iPhone, which is expected to be launched next month. Christopher R. Hansen‘s Valiant Capital also upped its stake in the company during the second quarter, by 3% to 999,800 shares.

#1. Alphabet Inc (NASDAQ:GOOGL)

– Shares Owned by Welch Capital Partners (as of June 30): 16,100 Class C Shares

– Value of Holding (as of June  30): $11.14 Million

Alphabet Inc (NASDAQ:GOOGL) continued to remain Welch Capital Partners’ largest tech holding at the end of second quarter, even though the fund inched down its stake in the company by 137 Class C shares during the period. Shares of the technology giant saw a huge rally last month in anticipation of the company’s second quarter results and are currently very close to their lifetime high of $813.88, which they made recently. Interestingly, this rally in the stock hasn’t been hindered by the numerous regulatory issues related to its business practices that the company is facing in several countries. On August 11, authorities in Russia fined the company $6.75 million for abusing its market position with Android. A day after that, reports emerged that antitrust authorities in South Korea are investigating the company on allegations that it violated the country’s anti-competition laws. Earlier this year, authorities in France raided Alphabet’s Paris headquarters as part of a €1.6 billion ($1.79 billion) tax fraud investigation. On August 8, Alphabet announced that it has agreed to acquire cloud-commerce platform Orbitera for an undisclosed sum of money.

Ferdinand Groos‘ Cryder Capital upped its stake in Alphabet Inc (NASDAQ:GOOGL)’s Class A shares by 25% to 13,690 during the second quarter, while also raising its position in the company’s Class C shares by 25% during that time, to 11,509.

Disclosure: None