McKinley Capital Management’s Top Tech Stock Picks Includes 2 FANG Stocks

#3. Facebook Inc. (NASDAQ:FB)

 – Number of shares held by McKinley (as of March 31): 449,117

 – Value of McKinley’s holding (as of March 31): $51.24 Million

The Alaska-based asset manager trimmed its position in Facebook Inc. (NASDAQ:FB) by 10% during the first three months of 2016, ending the first quarter with 449,117 shares valued at $51.24 million. Facebook generated $5.38 billion in revenue during the first quarter of 2016, up from $3.54 billion recorded for the first quarter of 2015. The increase was mainly driven by higher advertising revenue, primarily due to higher revenue from News Feed ads on mobile devices. The growth rate of Facebook’s advertising revenue depends largely on user growth and engagement, and Facebook has been successful in driving up both metrics. Facebook’s mobile daily active users (DAUs) increased to 989 million on average during March 2016, up from 798 million during March 2015. The company says its global users spend an average of 50 minutes each day using the Facebook, Instagram and Messenger platforms. Facebook’s market capitalization has gained 15% since the start of 2016. A total of 2.80 million Facebook Inc. (NASDAQ:FB) shares were owned by Columbus Circle Investors, managed by Clifford G. Fox, at the end of March.

#2. Apple Inc. (NASDAQ:AAPL)

 – Number of shares held by McKinley (as of March 31): 601,354

 – Value of McKinley’s holding (as of March 31): $65.54 Million

McKinley Capital Management owns 601,354 shares of Apple Inc. (NASDAQ:AAPL) as of the end of the March quarter, 27,758 shares less than it did at the end of 2015. The iPhone maker has seen its shares decline by 11% in value year-to-date, mainly owing to the disappointing results embedded in its most recent earnings report. Apple shipped 51.2 million iPhones during the first three months of 2016, down from 61 million shipped in the same period of the previous year. The question most investors are currently asking themselves is whether Apple’s upcoming iPhone 7 will be able to reverse the company’s first year-over-year iPhone sales drop. Towards that end, Apple is looking to help reverse the course of declining iPhone sales by switching focus to the world’s second-largest smartphone market, India, where its market share is miniscule. Of course, whether its high-priced offerings will be able to gain much traction in the country, which does not yet have the same level of wealth that China does (where Apple has made great strides). David Harding’s Winton Capital Management reported owning 1.09 million shares of Apple Inc. (NASDAQ:AAPL) as of March 31.

#1. Alphabet Inc. (NASDAQ:GOOG)

 – Number of shares held by McKinley (as of March 31): 94,604 Class C Shares

 – Value of McKinley’s holding (as of March 31): $70.48 Million

Alphabet Inc. (NASDAQ:GOOG) was the largest holding in McKinley’s equity portfolio at the end of March, being comprised of 94,604 Class C shares of the company worth $70.48 million. After launching its YouTube Red membership service last year, the first paid subscription service of Alphabet’s YouTube, the company is allegedly planning on adding a separate subscription service called “Unplugged” that is said to offer a package of cable TV channels. This initiative may enable Alphabet to pull yet more viewers away from the traditional cable TV market, which is perceived as being too expensive and immobile. As a result, YouTube’s potential project may unlock a flourishing revenue stream for Alphabet in the future. Alphabet’s Class C shares are down by 4% year-to-date, but have gained 36% in the past 12 months. Fisher Asset Management owns 476,265 Class C shares of Alphabet Inc. (NASDAQ:GOOG) as of the end of the March quarter.

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