America’s Largest Investor Dumps Apple Stock
America’s largest pension fund dumped Apple stock in the first quarter. Investors are concerned about Apple's AI integration and tariffs. The post America’s Largest Investor Dumps Apple Stock appeared first on 24/7 Wall St..
The California Public Employees’ Retirement System (CalPERS) dumped Apple Inc. (NASDAQ: AAPL) stock in the first quarter, according to SEC filings. It is America’s largest pension fund, managing $540 billion.
24/7 Wall St. Key Points:
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America’s largest pension fund dumped Apple Inc. (NASDAQ: AAPL) stock in the first quarter.
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Investors are concerned about Apple’s AI integration and tariffs.
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CalPERS did not give a reason, though it stated its overall intentions. “Calpers’ public assets investments are index-oriented and optimized using systematic and quantitative investment strategies, not driven by any single period’s events,” management wrote in a letter to Barron’s. That leaves investors to guess.
At the same time, it sold Apple but also bought Meta Platforms Inc. (NASDAQ: META), Advanced Micro Devices Inc. (NASDAQ: AMD), and McDonald’s Corp. (NYSE: MCD). It turned out to be a smart move. For example, Meta’s shares are up 10% this year, while the market is flat. Apple is down 29% and AMD is 5% lower.
The Trouble With Apple
What did CalPERS management see? Apple is behind the industry in adopting artificial intelligence (AI) for its products. Management has announced that it will not do so until next year. Apple has not found a China-based partner to launch its AI products in the world’s largest smartphone market. Smartphone penetration in China is nearly a billion, which is about three times the number in the United States.
Apple also faces sudden 25% tariffs on products it imports into the United States. President Trump was angered that as Apple moves production out of China, it will shift much of that to India. The company relies on these low-cost labor markets to maintain its profits. Making them in America is simply too expensive.
Apple investors have also been concerned about the future of the iPhone. Each generation of smartphones requires some degree of upgrade to attract new buyers. Those upgrades tend to be less and less impressive. A better camera and fast processor will eventually lose their charm.
Apple has been the world’s most valuable company based on market cap for most of the past four years. Those days may have come and gone.
Why Is No One Talking About Apple’s Long-Term Artificial Intelligence Plans?
The post America’s Largest Investor Dumps Apple Stock appeared first on 24/7 Wall St..
