Apple Inc. (AAPL)’s Mixed Investor Sentiment

Page 2 of 2

Whitney Tilson Dumps Apple Stock

Widely respected value investor, Whitney Tilson sold of his Apple stake at a loss in a letter to investors. Whitney Tilson is one of the founders of the Value Investing Congress, which is a major event in which thousands flock to, in order to see top value investors pitch their best ideas. Whitney Tilson has a phenomenal track record and has been beaten the S&P 500 significantly since his fund’s inception. However, his performance in the last two years was weak.

Tilson has had great success especially with companies like Netflix, Inc. (NASDAQ:NFLX). He pitched Netflix as one of his best ideas in Oct-2012 at the Value Investing Congress when the stock of the Internet Streaming giant was trading for $54. Netflix is now trading at more than $180, thanks to a blow-out quarter. Interestingly, Tilson made money on Netflix on both the long and the short side previously.

In addition, Tilson lists Apple’s competitor and the second largest handset maker in the world, Nokia Corporation (NYSE:NOK) as one of his biggest short positions. Nokia holds 17.9% market share on a global basis, but the company continues to suffer with respect to profitability, amidst heavy competition from Samsung and Apple.

Whitney Tilson didn’t disclose his investment thesis for being short Nokia or for selling out of Apple. However, he did state that Apple is the only stock he sold out off recently at a loss.

Going Forward

Needless to say, there is a lot of uncertainty surrounding Apple. Concerns surrounding success in China and other emerging markets, and the reduced pace of innovation are albeit legitimate ones. While the stock might have upside, in the short-term prices might fluctuate even more, before reaching its intrinsic value.

Checking in with thought leaders is a good idea, whether one is bearish or bullish on Apple, however, it’s not a good idea to bet the house. There are thousands of companies to choose from in the stock market, and one should not put in too many chips on one company.

The article Apple’s Mixed Investor Sentiment originally appeared on Fool.com and is written by Ishfaque Faruk.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2