2. Apple Inc. (NASDAQ:AAPL)
Number of Hedge Fund Holders: 166
Apple Inc. (NASDAQ:AAPL) is a technology powerhouse best known for its main products, the iPhone, Mac, and Apple Watch, as well as its diverse range of services, which includes iCloud and Apple Music.
According to Morgan Stanley, Apple Inc.’s (NASDAQ:AAPL) latest AI program, Apple Intelligence, appears to have boosted iPhone demand in the United States somewhat during the December quarter. Looking ahead, Morgan Stanley expects iPhone demand in emerging nations other than China to remain robust, with India leading the way.
On February 4, JPMorgan restated an Overweight rating and a $270 price target for Apple Inc. (NASDAQ:AAPL). The firm’s assessment was based on Sensor Tower data, which showed that Apple’s App Store sales climbed by 2.7% month-over-month in January, above the historical average growth rate of 2.3% from December to January.
Tsai Capital stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q4 2024 investor letter:
“We initiated our investment in Apple Inc. (NASDAQ:AAPL) in 2016 and elevated it to a core holding in 2018, the same year the company introduced its redesigned 13-inch and 15-inch MacBook Pro models. Under Tim Cook’s visionary leadership, Apple has consistently redefined innovation in hardware and software.
The September 2024 launch of the iPhone 16, with its groundbreaking AI capabilities, including enhanced image generation tools, marks another inflection point. We believe this transformative device is the foundation for an AI-driven supercycle and could entice approximately 100 million consumers to upgrade, reinforcing Apple’s leadership in the industry.
Today, Apple’s ecosystem spans over two billion active devices, supported by a rapidly-growing base of subscription services. This strategy has helped to turbocharge customer engagement and spending. In the most recent fiscal year, which ended in September 2024, Apple’s high-margin services division accounted for 39.3% of total gross profits, up from 32.8% just two years ago.
Apple’s financial footing remains exceptional, with approximately $50 billion in net cash and marketable securities. Looking ahead, we expect earnings-per-share growth to outpace revenue growth, driven by margin expansion and continued share buybacks.”
