15 Best FAANG Stocks to Buy According to Hedge Funds

Page 9 of 15

7. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 159

Apple Inc. (NASDAQ:AAPL) ranks among the best FAANG stocks to buy according to hedge funds. On June 26, UBS maintained its $210 price target and Neutral rating on Apple Inc. (NASDAQ:AAPL), despite reports that the tech giant is considering purchasing or collaborating with Perplexity AI. According to UBS, the alleged purchase would be the largest in Apple’s history, costing at least $14 billion, or more than 10% of the company’s annual free cash flow.

Despite being financially feasible, UBS pointed out Apple’s “mixed” history of incorporating larger acquisitions like Beats and Intel’s modern division. UBS also pointed out that Perplexity has been accused of plagiarism and unauthorized material use in the past, further complicating the potential deal.

Given Apple’s “underwhelming” AI efforts thus far, the firm warned that acquiring Perplexity would be seen as “defensive in nature, not a positive catalyst,” especially since the Google DOJ case is scheduled for remedies in August 2025.

Apple Inc. (NASDAQ:AAPL) is a global tech company that is known for its core offerings, the iPhone, Mac, and Apple Watch, as well as its expansive service portfolio, which includes iCloud and Apple Music.

Page 9 of 15