China’s Real Estate Market Crash Can Affect These 5 American Stocks

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131  

Apple Inc. (NASDAQ:AAPL) is a diversified technology company. Since iPhones, one of the premier products of Apple, are manufactured in China, there is a larger perception that the company has outsized exposure to the Chinese market. However, the China revenue of the firm accounts for less than a quarter of the total revenue for Apple, in contrast to other firms like Qualcomm and Starbucks. This insulates Apple from a market crash in China somewhat but does not absolve it of risk completely. 

On July 29, Morgan Stanley analyst Erik Woodring maintained an Overweight rating on Apple Inc. (NASDAQ:AAPL) stock with a price target of $180, noting that the second quarter results of the firm were better than feared. 

At the end of the first quarter of 2022, 131 hedge funds in the database of Insider Monkey held stakes worth $182 billion in Apple Inc. (NASDAQ:AAPL), compared to 134 in the preceding quarter worth $186 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.

Follow Insider Monkey on Twitter