Apple

Apple Just Misses Hedge Funds’ Top 10 Holdings

Apple is not as popular with hedge funds as other tech stocks. Even though Apple is a “big five” technology company, Goldman Sachs analysts said in a note that it’s not in the “top five” holdings by hedge funds, according to news from CNBC.

The note contains a list of 50 stocks that appear most frequently in the top 10 holdings of fundamentally driven hedge funds. Apple takes the eleventh spot on the list and is a top 10 holding in 34 hedge funds. By comparison, Amazon is the most popular tech stock with hedge funds — as a top 10 holding in 80 funds.

Facebook appears as a top 10 holding in 70 hedge funds, while Alphabet is a top holding in 54 hedge funds. Microsoft follows as a top holding in 52 funds.

Still, the news comes as Apple beat on earnings and revenue expectations for its first fiscal quarter of 2018, thanks to higher-than-expected device prices. But iPhone sales by unit — the engine driving the Apple machine — missed expectations, and guidance for the quarter ending in March also came in below forecasts.

By the numbers, Apple reported revenue of $88.3 billion with a profit of $3.39 per share. That’s compared to Wall Street’s predictions of $87.3 billion and profits of $3.86 per share, up from the $78.4 billion and $3.36 per share registered a year earlier, respectively.

The better-than-expected revenue result was driven by an average selling price for iPhones that came in ahead of predictions. After all, the average price of an iPhone during the quarter was $796 versus expectations of $756.

Apple’s services business — which includes Apple Music, the App Store and the iCloud — grew 18 percent to $8.4 billion. That was a slight miss, though, as analysts were looking for $8.6 billion. Apple CFO Luca Maestri said the lower services revenue came about because the holiday quarter was only 13 weeks rather than 14. It was down slightly from $8.5 billion the quarter before, though Apple CEO Tim Cook maintained the sector is on pace to meet and surpass the goals the firm has set for its progress.

——————————

New PYMNTS Report: The CFO’s Guide To Digitizing B2B Payments – August 2020 

The CFO’s Guide To Digitizing B2B Payments, a PYMNTS and Comdata collaboration, examines how companies are updating their AP approaches to protect their cash flows, support their vendors and enable their financial departments to operate remotely.

TRENDING RIGHT NOW