Daniel Loeb Buys Apple, Online Stocks
- By Holly LaFon
Daniel Loeb (Trades, Portfolio) bought nine stocks in the third quarter, but the majority was of tech and internet companies.
Buying 2.5 million shares, Loeb's $282.6 million stake in Apple Inc. (AAPL) was his largest new holding and one he bought after its price dipped by 9% in the first half. Loeb has weaved in and out of Apple in the past, last ousting a stake in the fourth quarter 2014 at an average price around $76. He bought back in at a quarterly average price around $106.
Warning! GuruFocus has detected 7 Warning Signs with AAPL. Click here to check it out.
The intrinsic value of AAPL
Apple Inc. has a market cap of $578.18 billion; its shares were traded around $108.43 with a P/E ratio of 13.09 and P/S ratio of 2.79. The trailing 12-month dividend yield of Apple Inc. stocks is 2.06%. The forward dividend yield of Apple Inc. stocks is 2.12%. Apple Inc. had an annual average earnings growth of 42.5% over the past 10 years. GuruFocus rated Apple Inc. the business predictability rank of 3-star .
His second largest position, a $275.05 million stake in Alibaba Group Holding (BABA), constituted 2.6 million shares. He also owned Alibaba before, selling a position in the first quarter 2015 at an average price around $90. It averaged $93 in the recent third quarter.
Alibaba Group Holding Ltd. has a market cap of $232.48 billion; its shares were traded around $92.99 with a P/E ratio of 31.71 and P/S ratio of 12.45. Alibaba Group Holding Ltd. had an annual average earnings growth of 89.7% over the past 10 years. GuruFocus rated Alibaba Group Holding Ltd. the business predictability rank of 3-star .
Loeb also bought 5.45 million shares of Facebook Inc. (FB), 550,000 shares of Alphabet Inc. (GOOGL), and 2.3 million shares of Dell Technologies (DVMT) during the quarter. Cumulatively tech stocks make up almost 14% of his portfolio, an increase from 11.7% in the second quarter.
Loeb has been having a great year compared to much of the hedge fund industry. Each of these stocks is up and his hedge fund, Third Point, is beating the market as of Oct. 31, with a 6.4% return versus 5.9% for the S&P 500. Equities were among several sub strategies that contributed to the gains.
"Our results have been driven by a number of idiosyncratic opportunities that we have invested in over the past six months and we see more of the same types of ideas in our pipeline," he said in his recent shareholder letter.
Read his third-quarter shareholder letter here.
See Daniel Loeb (Trades, Portfolio)'s stock portfolio here. Start a free 7-day trial of Premium Membership to GuruFocus.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 7 Warning Signs with AAPL. Click here to check it out.
The intrinsic value of AAPL
