“Apple Inc.’s third-quarter rally is unwelcome news to the unusually large swath of investors who have been giving up on the stock,” Lu Wang reports for Bloomberg.
“Shares of the iPhone maker have jumped 21 percent this quarter, trouncing the S&P 500 Index,” Wang reports. “At the same time, the number of its institutional owners has fallen 1.3 percent to 3,847 since June as 295 firms sold out of their positions entirely, a 28 percent increase from three months ago, according to regulatory filings compiled by Bloomberg. It’s another blow for active managers who are trailing the market by the most in more than a decade based on full-year results. Apple’s share gain was about nine times the S&P 500 as Chief Executive Officer Tim Cook’s product plans eased concern over the company’s future growth.”
“Growing pessimism turned out to be misplaced as the stock staged the biggest weekly rally in five years. Even as the S&P 500 suffered its worst retreat since the U.K’s vote to exit the European Union over the past week, Apple shares stood as one of the biggest winners,” Wang reports. “With gains exceeding 2 percent every day since last Friday, the stock is up 12 percent, beating all but one companies in the S&P 500. T-Mobile US Inc. and Sprint Corp. said they’d received almost four times as many orders for the iPhone 7 as previous models, fueling speculation that the new product is off to a faster start than usual.”
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Don’t trade AAPL, own it. – Jim Cramer
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