Posted on August 15th, 2022
Apple Inc. (AAPL) weathered market volatility over the past year and has outperformed the S&P 500, also rising on the WhaleWisdom Heatmap to eight from thirteen. While hedge funds were selling in the first quarter, Apple rose by approximately 18% as of August 12, 2022, compared to the S&P’s loss of about 5% over the past year.
Apple is a multinational technology company driven by innovation. Apple designs, manufactures and markets smartphones, personal computers, networking applications, and portable music players. The technology company offers online services such as Mac App, a digital distribution platform for its applications, and iTunes, a media library and store. Amidst market volatility, Apple has begun to thrive again since July 2022.
Hedge Funds and Institutions Sell
Hedge Funds adjusted their portfolios, and the aggregate 13F shares held decreased to approximately 1.1 billion shares from 1.2 billion, a slide of about 0.7%. Overall, 22 hedge funds created new positions, 230 added to an existing position, 34 closed exited, and 332 reduced their stakes. Institutions were also selling and lowered their holdings by about 1.9% to 9.3 billion. The 13F metrics between 2000 and 2022 show that funds held remain on a steady rise despite a challenging market.
Encouraging Multi-year Figures
Analysts expect to see earnings rise through 2023, with increases in growth estimated to bring earnings per share to $6.10 by September 2022 and $6.44 by September 2023. Year-over-year estimated increases could also bring revenue to close to $411.7 billion by 2023, up from a predicted $392.5 billion in 2022.
Analysts See Apple’s Potential
Apple stands to see a boost in revenue from increased pricing and the upcoming releases of new products. Analyst Ming-Chi Kuo of TF International Securities shared news of price hikes for the new iPhone 14 series and that the release of a new mixed reality headset may be as early as January 2023. Bernstein analyst Toni Sacconaghi was also interested in September’s upcoming launch of the iPhone 14. Sacconaghi noted Apple management’s confidence in their business and views the level of success of the new iPhone as a vital sign as to whether consumer demand remains strong for upgrades despite challenging economic times.
Apple’s sales remain strong despite a volatile economy, and analysts have shared encouraging earnings and revenue growth predictions through 2023. Their iPhones and other products are likely to see increased demand with upcoming launches. The technology stock holds long-term potential for patient investors.