Yahoo Finance Apple (AAPL) Traded Higher After Its AI Strategy Announcement
Wedgewood Partners, an investment management company, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. In the second quarter, Wedgewood Composite’s net return was 3.7% compared to the Standard & Poor’s 4.3%, the Russell 1000 Growth Index’s 8.3%, and the Russell 1000 Value Index’s -2.2% return for the same period. Year to date the composite returned 15.7% compared to the 15.3%, 20.7%, and 6.6% returns for the indexes, respectively. In addition, you can check the fund's top 5 holdings to know its best picks in 2024.
Wedgewood Partners highlighted stocks like Apple Inc. (NASDAQ:AAPL), in the second quarter 2024 investor letter. Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 6.81%, and its shares gained 17.31% of their value over the last 52 weeks. On July 17, 2024, Apple Inc. (NASDAQ:AAPL) stock closed at $228.88 per share with a market capitalization of $3.51 trillion.
Wedgewood Partners stated the following regarding Apple Inc. (NASDAQ:AAPL) in its Q2 2024 investor letter:
"Apple Inc. (NASDAQ:AAPL) also contributed to performance after unveiling its AI strategy to its software developers. The Company has been at the forefront of proprietary computer processor development for over a decade. Given the compute-intensive nature of AI applications, Apple is well-situated to develop a suite of compelling, consumer-friendly AI services that are also cost-effective. While revenue growth has been relatively flat post-Covid-19, we expect Apple's AI value proposition will be compelling enough for consumers to continue growing their engagement in the Apple ecosystem over the next several years."
A busy sidewalk filled with people using Apple devices like iPhones, iPads and Apple Watches.
Apple Inc. (NASDAQ:AAPL) is in 9th position on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 150 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the first quarter which was 131 in the previous quarter. Apple Inc.’s (NASDAQ:AAPL) trailing 12-month revenue was $381.62 billion and its year over year quarterly revenue growth rate was -4.30%. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Apple Inc. (NASDAQ:AAPL) and shared the list of AI stocks that analysts believe have greater upside potential. Apple Inc. (NASDAQ:AAPL) is in 5th position on the list. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
