Apple Inc (NASDAQ:AAPL) Still Billionaires' Top Favourite Stock
By Reissa Su | February 21, 2014 9:11 PM EST
Apple Inc (NASDAQ:AAPL) remains a favourite stock among billionaires, according to Fortune which created a chart of top ten holdings by billionaire investors based on iBillionaire data.
A woman looks at the screen of her mobile phone in front of an Apple logo outside its store in downtown Shanghai September 10, 2013.
An iOS application, iBillionaire and Web site, iBilliionaire.me, has transformed into an exchange-traded fund (ETF) that offered investors a 30-stock portfolio chosen to mimic the investment strategies of 21 billionaires, including George Soros, Warren Buffet and Carl Icahn.
It may no longer come as a surprise why billionaires like Carl Icahn, Apple Inc's most active investor, maintain Apple as one of their top 10 holdings. In a letter to Apple Inc investors dated Feb 10, Mr Icahn wrote he was backing off from his non-binding proposal that would be forcing the iPhone maker to add another $50 billion to its stock buyback plan. He acknowledged that Apple is now closer to his requested stock repurchase target, following Apple CEO Tim Cook's announcement of the $14-billion buyback.
The billionaire activist told CNBC in January that he continued to benefit and made a "great deal of money" when he buys Apple shares that went down. Mr Icahn firmly believes it is "more compelling" for Apple Inc to allow a stock buyback. He reveals he is "encouraged" when Mr Cook talked about the company's plans for new products.
While other investors question if Apple Inc is still a growth company, iPhone maker has bought back $14 billion of its stocks in the recent weeks. The recent has increased Apple's total stock buyback to $40 billion shares in a span of 12 months. Mr Cook remarked in an interview with the Wall Street Journal that it was a record-breaking buyback for a company in a similar period. He said Apple will reveal more updates on its stock buyback by March or April 2014.
Apple stock ratings
Bank of America analysts have issued the "Neutral" rating for Apple shares due to the iPhone maker's lack of a low-priced iPhone which would have been a success in emerging markets. Analysts believe that Apple's deal with China Mobile will have a likely less than expected impact on Apple's growth. The lack of an "innovative" product was a factor in the rating as well.
The equities researchers at Ned Davis Research upgraded Apple's stock to a "Buy" rating from the previous "Neutral" rating with a price target of $590. A total of 29 analysts have issued a "Buy" rating for Apple's stocks with a consensus price target of $597.88.
With the recent news of an Apple TV upgrade, iPhone 6 rumours and the meeting between Tesla CEO Elon Musk and Apple executives, investors continue to anticipate the launch of Apple's "innovative" products and not just a refresh of its existing product lines.
To contact the editor, e-mail:
Most Popular Slideshows
- Jennifer Lawrence & Nicholas Hoult Allegedly Split: Mad Max Actor Cheats with Kristen Stewart & Riley Keough - Reports
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Lunch with the Gods: Pope Francis Eats with Vatican Workers in Cafeteria
Join the Conversation
- Malaysia Airlines Considers Changing Name After MH370 and MH17 Tragedies
- Fast Food Meat Scandal: McDonald’s Suspend Nuggets and McSpicy Chicken Filets
- Texas Man Selling Condo With ‘Funniest and Most Revealing Ad’
- Tweens Fool Their Parents Online, McAfee Reports
- Debt-Laden Millennials Join Stock Market
- Google Nexus 6, 8 with Android L on Release Date Promises Killer Mobile Device Experience
- iPhone 6 Release Date Relevance to iOS Newbies: Specs Meaning, Price Considerations
- Killer Whales Gobble Japanese Whaling Crew
- HTC One M8 Android 4.4.3 KitKat Update Roll Out, Introducing the HTC One Remix
- 12-inch MacBook Apple Retina and 2014 MacBook Pro to Feature Liquid Sensors, Release in October
- The Pirate Bay Releases ‘The Mobile Bay’: Mobile Torrent Download Made Easier but Remains Illegal
- 5 Marketing Nuggets We Can All Learn From Lady Gaga