Apple Losing Its Bite With Big Whales? Why Institutional Investors Are Picking Different Tech Orchards
Portfolio Pulse from Shanthi Rexaline
Apple Inc. (NASDAQ:AAPL) has seen a decrease in its weighting in institutional portfolios by 26 basis points to 5.51% in Q2, according to Morgan Stanley's Erik Woodring. This marks the largest single quarter increase in Apple under-ownership since Morgan Stanley began tracking the data. Apple's under-ownership level has been unprecedented since 2008, surpassing Microsoft Corp. (NASDAQ:MSFT) as the least-owned large-cap tech stock among institutional investors. Woodring suggests that concerns regarding valuation versus short-term fundamentals may be contributing to this relatively low institutional ownership.
August 24, 2023 | 9:23 am
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NEGATIVE IMPACT
Apple's under-ownership among institutional investors has increased, potentially due to concerns about valuation versus short-term fundamentals.
The decrease in Apple's weighting in institutional portfolios suggests that major investors are becoming more cautious about the company's stock. This could put downward pressure on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Microsoft has been surpassed by Apple as the least-owned large-cap tech stock among institutional investors.
While Microsoft has been surpassed by Apple as the least-owned large-cap tech stock among institutional investors, the impact on Microsoft's stock is likely to be neutral as the news is more about Apple's under-ownership.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50