Google passes Apple as top U.S. mutual, hedge fund holding

Posted:
in AAPL Investors edited January 2014
Google's stint as Wall Street's new darling brought another milestone on Thursday, as shares of the internet search giant passed Apple to become the most-owned stock by the 50 largest actively managed mutual funds in the U.S.

iMacs


A new Citigroup report examining investments at the end of the fourth quarter names Google as the top holding among the largest mutual and hedge funds. Information compiled by Bloombergfinds Google shares now trading at roughly 25 times the company's profits, versus less than 10 times earnings for Apple. The publication notes that the gap is the widest it's been since June of 2005.

Shares of Google have surged recently, contrary to Wall Street's increasingly cautious outlook on Apple. The prevailing attitude among analysts appears to be that the Cupertino company's earnings are slowing in the face of heightened competition and perceived saturation of the premium smartphone market.

Investors are waiting to see whether Apple can open new avenues for revenue, potentially with a watch-like device or the ever-rumored Apple TV.

Google, meanwhile, is seen to have more room for growth not only in Internet search, where it holds a commanding 67 percent market share, but also in smartphone software. With a 70 percent share of the smartphone market, Android continually pumps money into Google's coffers through search engine traffic, ads and app royalties.

Google closed up $1.22 today at $832.60, while Apple also gained ground to hit $430.58, a $4.92 increase from the morning bell.
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Comments

  • Reply 1 of 27
    slurpyslurpy Posts: 5,076member


    Who gives a ****? There is no longterm certainty in this, it means absolutely nothing. 

  • Reply 2 of 27
    apple ][apple ][ Posts: 8,360member


    I hate to keep repeating myself, but remember the people who were saying that more funds and institutions would be buying into Apple because of the dividend? image


     


    Well..............That worked out real nicely.image


     


    Apple needs the big funds and institutions, because there are so many shares of AAPL available, and when some of these big players are leaving, that's obviously not a good thing. Apple should cut down on the number of shares available, IMO.


     


    For the time being, it seems like some of the big money players prefer Google, but trends can quickly change, and those same people will be jumping back into Apple when the time is right.


     


    And I wonder what the people who claim that AAPL is too expensive have to say about Google? If $430 is too expensive for the average investor, then what about $832? That price doesn't seem to be scaring anybody, because Google's stock seems to be doing pretty good and is constantly on the rise. I think that small time investors don't matter at all. Who gives a crap about small time investors? It's the big time investors that run the show and Apple needs the big pocketed investors.

  • Reply 3 of 27
    buckalecbuckalec Posts: 192member


    Hopefully the fog of fancy eyewear models will lift, the catalog of failures will be looked at again (Google TV- twice) and much much more. 

  • Reply 4 of 27
    genovellegenovelle Posts: 776member
    Android continually pumps money into Google's coffers through search engine traffic, ads and app royalties?

    I'm puzzled. Most of Googles mobile income is from iOS. Apple commands a far greater share of web traffic even though Android "ships" more devices, and actually sells far fewer apps because of piracy. but they are better positioned because they give stuff away. Really?
  • Reply 5 of 27
    genovellegenovelle Posts: 776member

    Quote:

    Originally Posted by Apple ][ View Post


    I hate to keep repeating myself, but remember the people who were saying that more funds and institutions would be buying into Apple because of the dividend? image


     


    Well..............That worked out real nicely.image


     


    I always thought that was a bad idea.  I felt like it wasn't broken and didn't need fixing.  Now that they decided to fix it, it's broken.


     


  • Reply 6 of 27
    charlitunacharlituna Posts: 7,197member
    For a company that just admitted they willfully violated several patents
  • Reply 7 of 27
    christophbchristophb Posts: 1,431member
    I always invest in funds that buy into institutions that claim to do no evil. Take April 15th every year.
  • Reply 8 of 27
    archarch Posts: 66member


    Its actually an omen. Only if the hedge funds have enough, will they start dumping the stock and Google seems to be next in line

  • Reply 9 of 27


    Maybe it's true: ANDROID is winning. image

  • Reply 10 of 27

    Quote:

    Originally Posted by Apple ][ View Post


    I hate to keep repeating myself, but remember the people who were saying that more funds and institutions would be buying into Apple because of the dividend? image


     


    Well..............That worked out real nicely.image


     


    Apple needs the big funds and institutions, because there are so many shares of AAPL available, and when some of these big players are leaving, that's obviously not a good thing. Apple should cut down on the number of shares available, IMO.


     


    For the time being, it seems like some of the big money players prefer Google, but trends can quickly change, and those same people will be jumping back into Apple when the time is right.


     


    And I wonder what the people who claim that AAPL is too expensive have to say about Google? If $430 is too expensive for the average investor, then what about $832? That price doesn't seem to be scaring anybody, because Google's stock seems to be doing pretty good and is constantly on the rise. I think that small time investors don't matter at all. Who gives a crap about small time investors? It's the big time investors that run the show and Apple needs the big pocketed investors.



     


    With almost $150,000,000,000 in the bank I don't think Apple needs any of these guys.  These guys can go hedge their bets on Google!  Good riddance!  That is the great thing about the free market system, they know they can't completely leave Apple because they can't bet the farm on Google either!  If these guys really knew what they were doing they would have bought Apple at $89 but no that was too risky back then and there was no proof that the iPhone was going to be successful!  

  • Reply 11 of 27
    red oakred oak Posts: 627member
    Help me understand,

    - Google has been effectively banned from China. Both officially for their search functionality by the government, and by Android phone manufactures who strip out all Google features (e.g. Google Play). Google's China revenue is ~ $0. In the biggest and fastest growing mobile market

    - The company faces a major headwind in shift from higher desktop to lower mobile CPCs

    - The company still has another $5-$7Billion it needs to write-off from the MOT acquisition

    - Net income has been flat over the last two years

    - Apple income in 2012 was 4X Google's

    - Embarrassing products launches: Google TV, Q,

    - 80% of incomes still from AdSense. A one trick pony

    - It at risk at having to go to war against its biggest hardware OEM Samsung. Samsung effectively is Android

    - Its table strategy has been hijacked by Amazon. All Google services are stripped out by Amazon

    - 40% of its smartphone base is still running Gingerbread 2.3



    Yet, its PE is 25 vs. 10 for Apple

    Am I getting all this right?





  • Reply 12 of 27
    apple ][apple ][ Posts: 8,360member

    Quote:

    Originally Posted by curveddesign.com View Post


     


    With almost $150,000,000,000 in the bank I don't think Apple needs any of these guys. 



     


    Isn't a large portion of that money basically untouchable though? From what I understand, it seems like a big amount is basically caught in limbo, outside of the US, and it just sits there. Is Apple just waiting around for the US govt to grant them some sort of tax breaks? What if the US doesn't? Because that's been the case up until now.


     


    I'm not an expert and I'm not going to claim to know what Apple should do with it's money, but I think that they should begin spending some of it on something useful.

  • Reply 13 of 27
    jragostajragosta Posts: 10,473member
    red oak wrote: »
    Help me understand,

    - Google has been effectively banned from China. Both officially for their search functionality by the government, and by Android phone manufactures who strip out all Google features (e.g. Google Play). Google's China revenue is ~ $0. In the biggest and fastest growing mobile market

    - The company faces a major headwind in shift from higher desktop to lower mobile CPCs

    - The company still has another $5-$7Billion it needs to write-off from the MOT acquisition

    - Net income has been flat over the last two years

    - Apple income in 2012 was 4X Google's

    - Embarrassing products launches: Google TV, Q,

    - 80% of incomes still from AdSense. A one trick pony

    - It at risk at having to go to war against its biggest hardware OEM Samsung. Samsung effectively is Android

    - Its table strategy has been hijacked by Amazon. All Google services are stripped out by Amazon

    - 40% of its smartphone base is still running Gingerbread 2.3



    Yet, its PE is 25 vs. 10 for Apple

    Am I getting all this right?

    You've got it - except that you've overstated Apple's P/E. It's actually 9 - and closer to 7 after adjusting for cash.
    "Apple wrote:
    [" url="/t/156366/google-passes-apple-as-top-u-s-mutual-hedge-fund-holding#post_2290128"]
    Isn't a large portion of that money basically untouchable though? From what I understand, it seems like a big amount is basically caught in limbo, outside of the US, and it just sits there. Is Apple just waiting around for the US govt to grant them some sort of tax breaks? What if the US doesn't? Because that's been the case up until now.

    I'm not an expert and I'm not going to claim to know what Apple should do with it's money, but I think that they should begin spending some of it on something useful.

    It's not untouchable. They can bring it back if they want - they just have to pay taxes.

    As for the rest, Apple is doing things with its money. After all, they're spending billions on dividends. They're bought quite a few companies. They're investing billions in capital equipment. They're spending billions more on pre-buying materials.

    So why is the fact that they're generating more cash than the can spend a bad thing?
  • Reply 14 of 27
    addicted44addicted44 Posts: 821member
    Makes sense and completely explains why analysts have been bad mouthing apple.
  • Reply 15 of 27
    timbittimbit Posts: 331member
    I just hope Apple doesn't feel pressured to unveil a product early because their stock prices are low. We don't want things that are going to be rushed. Stay focused and release a polished product like always.
  • Reply 16 of 27
    genovelle wrote: »
    Android continually pumps money into Google's coffers through search engine traffic, ads and app royalties?

    I'm puzzled. Most of Googles mobile income is from iOS. Apple commands a far greater share of web traffic even though Android "ships" more devices, and actually sells far fewer apps because of piracy. but they are better positioned because they give stuff away. Really?

    The market is dreaming , that is why .
  • Reply 17 of 27
    gtrgtr Posts: 3,231member


    Google passes Apple as top U.S. mutual, hedge fund holding


    ...by idiot, short-term investors not intelligent enough to create multi-billion dollar businesses, far less small businesses, by themselves.


     


     


    Don't worry about the share price people.


     


    It's not connected to the ability of the company to do well. It just reflects the expectations and imaginations of non-business types who will change their minds at the drop of a hat.


     


    Here's the real formula:


     


    "Make great products, which means you make lots of money, which means even short-term investors re-invest in the long run. Repeat, lather, rinse."

  • Reply 18 of 27
    aaarrrggghaaarrrgggh Posts: 1,566member
    All I can say for GOOG is "Look Out Below!!"

    Here's to hoping that my shares get called away at $850!!
  • Reply 19 of 27




    - 40% of its smartphone base is still running Gingerbread 2.3











    Gingerbread, Ice Cream Sandwich, Jellybean -- God help us.

     

  • Reply 20 of 27

    Quote:

    Originally Posted by Timbit View Post



    I just hope Apple doesn't feel pressured to unveil a product early because their stock prices are low. We don't want things that are going to be rushed. Stay focused and release a polished product like always.


     


    Let's hope they are forced to reveal the new Mac Pro early!  image   All kidding aside, I agree, they should stay focused and not let the the Wall Street soap opera cloud their judgement!  Except for the Mac Pro of course!  image

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