Apple Attracts More Hedge Funds, but Other Tech Giants Keep Up

#3 Apple Inc. (NASDAQ:AAPL)

– Number of Hedge Fund Holders (as of March 31): 152
– Total Value of Hedge Fund Holdings (as of March 31): $14.82 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 2.50%

The smart money is divided on Apple Inc. (NASDAQ:AAPL). Although Carl Icahn’s Icahn Capital LP completely sold out of the stock due to concerns that the Chinese government might make life difficult for the company in the country, Warren Buffett’s Berkshire Hathaway recently established a $1 billion plus stake in the stock. Like it has been since 2007, Apple’s future fortunes largely depend on how well the iPhone sells. Although iPhone sales fell for the first time ever on a year-over-year basis, iPhone demand can still come back if Apple adds more innovation to future versions or if global economic conditions improve. With its hundreds of billions in cash, and foward P/E of 10.5, the stock looks cheap.

#2 Alphabet Inc (NASDAQ:GOOGL)

– Number of Hedge Fund Holders (as of March 31): 155
– Total Value of Hedge Fund Holdings (as of March 31): $14.98 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 2.90%

The number of elite funds holding class A shares of Alphabet Inc (NASDAQ:GOOGL) rose by one quarter-over-quarter to 155 at the end of March.  Additionally, 142 funds reported holding class C shares of Alphabet Inc (NASDAQ:GOOG), unchanged over the quarter, having amassed $14.90 billion worth of stock. Because of the company’s dominance in search, various European countries have made life difficult for Alphabet. In late May, Alphabet’s Google division’s Paris headquarters was raided by police in a French tax probe. The French finance ministry contends that the company owes as much as 1.6 billion euros ($1.79 billion) in back taxes. Alphabet’s Google division also faces a European Commission fine of around 3 billion euros for unlawfully promoting its services at the expense of hurting smaller rivals. Despite the fines, Alphabet remains a cash printing machine and the stock trades at just 18 times forward earnings estimates.

#1 Facebook Inc (NASDAQ:FB)

– Number of Hedge Fund Holders (as of March 31): 164
– Total Value of Hedge Fund Holdings (as of March 31): $14.54 billion
– Hedge Fund Holdings as Percent of Float (as of March 31): 4.50%

Facebook Inc (NASDAQ:FB) was in the equity portfolios of 164 funds from our database at the end of the first quarter, up from 146 at the end of the fourth quarter. The increased hedge fund ownership isn’t surprising. Despite the fact that it is on track to make tens of billions of dollars in revenue every year, the company is still growing at a very fast pace. For Facebook’s most recent quarter, sales rose 52% year-over-year to $5.38 billion, while the company’s EPS of $0.77 exceeded estimates by $0.15 per share. Given Facebook’s wide moat, margin leverage, and network effects, the stock remains a must-hold for many savvy investors’ portfolios. Given Mark Zuckerberg’s visionary strengths, investors can look forward to Facebook owning a leading share of the virtual reality, messaging bot, and artificial intelligence market over the next decade too.

Disclosure: none