Trimming Our Apple Exposure on Wednesday’s Market Strength
We’re bowing to our portfolio discipline and signs for a weak PC market next year.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| AAPL | Sell | 130 | 353.18 | 620 | 3.8 |
After you receive this alert, the Pro Portfolio will sell 130 shares of Apple (AAPL) at or near $351.50. Following the trade, we will own 620 AAPL shares, accounting for roughly 3.75% of the Pro Portfolio’s assets.
Today’s pop in AAPL has pushed Apple’s position size to more than 4.5% and has the shares moving toward our $360 price target. With numerous AAPL price target across Wall Street in the $340-$350 range, we may see some rating downgrades from the likes of UBS, Baird, Morgan Stanley, and JPMorgan as the stock exceeds targets. That combination means we’re doing some prudent portfolio management.
As we explained in this week’s Apple earnings note, there are multiple factors that will determine what’s ahead for Apple’s margins, which will be a key driver of the stock near-term as the company contends with memory costs. We’ll continue to drink in signals from key suppliers and what they say about iPhone prospects, but we’ll also balance those against more signs about weak prospects for PCs and other connected devices.
While the market cheers quarterly results and guidance last night from Advanced Micro Devices (AMD), fueled by more than 80% data center growth next year, AMD sees unit shipments for the PC market falling double-digits in 2027. That builds on Intel’s (INTC) comment that the PC market will be “challenging” for the next few quarters following what it described as accelerated correction over the last two months.
Apple’s Mac business accounted for just under 10% of total September-quarter revenue, but the memory pressures are likely to be felt across its iPad and wearables business. Both of those registered year over year declines in the quarter.
More Pro Portfolio:
- Increasing Exposure to This Chip Name as Shortage Endures
- Tracking 49 Signals Across 11 Portfolio Investment Themes
- October Monthly Roundup: Navigating the Tech Pullback. What We Bought and Our Shopping List.
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long AAPL and AMD.
