Apple, Inc. (AAPL) continued its upward momentum, outperforming the S&P 500 and rising by approximately 115.6% compared to the S&P’s gain of about 38.3% over the past two years. Institutions were actively buying the stock in the fourth quarter, and this global company climbed the WhaleWisdom Heatmap to a ranking of thirteen from nineteen.

Apple is a multinational technology company with a diversified business model of products and services. The company specializes in consumer electronics, software, hardware, and online services, focusing on mobile communication. Apple is well known for its role in the personal computer revolution, the iconic iPhone, and its wearables segment, including AirPods and the Apple Watch.

The innovative designer of computers, smartphones, and touchscreen tablets will soon hold a Peek Performance event, which will stream on Apple.com and YouTube. On March 8, 2022, this virtual event is rumored to include the announcement of a next-generation version of the iPhone SE and improved versions of Mac computers and the iPad Air.

Hedge Funds Sell Despite Growth

Apple received mixed responses from Hedge Funds and Institutions in the fourth quarter. Hedge Funds decreased their holdings slightly by about 0.6% to approximately 1.3 billion. Overall, 59 hedge funds created new positions, 231 added to an existing holding, 24 exited, and 276 reduced their stakes. However, the aggregate 13F shares held by Institutions increased to approximately 9.32 billion from 9.27 billion, a change of about 0.5%.

(WhaleWisdom)

Favorable Earnings Estimates

Analysts expect to see earnings rise in 2022 and 2023, bringing earnings per share up to $6.15 by September 2022 and $6.53 by September 2023. The outlook is also encouraging for revenue with an anticipated rise by 2022 to approximately $395.6 billion; this momentum may continue into 2023, with revenue estimated at $417.4 billion by 2023. Long-term 13F metrics between 2002 and 2022 suggest that Apple’s investment potential remains strong.

(WhaleWisdom)

Favorable Outlook

Analyst Samik Chatterjee of JPMorgan kept a $210 price target and Overweight rating on Apple following his firm’s buy-side survey results. The survey data points to share upside if Apple can sustain growth. Barclay’s analyst Ramsey El-Assal took an interest in Apple’s announcement of a Tap to Pay feature for the iPhone, citing its potential to benefit applications (apps) such as Square’s Point of Sale app. Apple’s solution will be available for payment platform operators and developers to integrate into their apps.

Bright Outlook Ahead

Apple’s growth trend and record highs in 2022 command attention. Future estimates encourage investors, offering strong motives to hold and consider acquiring shares. The tech company’s products and services continue to be in high demand among many consumers.

Advanced Micro Devices, Inc. (AMD) saw impressive growth in recent months, significantly outperforming the S&P 500. Advanced Micro Devices’ stock rose by approximately 153.7% compared to the S&P’s gain of about 39.7% over the past 2-years. Hedge funds were buying shares, and the company was added to the WhaleWisdom Index on February 15, 2022.

Advanced Micro Devices is an American-based company specializing in manufacturing semiconductor devices used in computer processing. The company is well known for its graphics processing units, motherboard chipsets, and data centers. AMD saw product demand growth during the coronavirus pandemic as many consumers sought out additional electronics for remote work, online education, and home entertainment. AMD debuted new mobile processors and graphics processors at a January CSE trade show with a focus on improved technology for notebook personal computers and gaming applications. AMD also recently acquired Xilinx, another technology and semiconductor company, intending to expand its presence in the data center market through Xilinx’s specialty chips.

Mixed Results in Fourth Quarter

Advanced Micro Devices saw mixed results in the fourth quarter and the aggregate 13F shares held by hedge funds decreased to about 158.5 million from 159.9 million, a mild decrease of approximately 0.9%. Of the hedge funds, 50 created new positions, 102 added to existing holdings, 28 exited, and 106 reduced their holdings. In contrast to hedge funds, institutions were buying. Overall, institutions increased their aggregate holdings by about 0.7%, to approximately 821.0 million from 815.6 million.

Favorable Estimates

Analysts estimate that year-over-year increases will bring earnings to $4.70 per share by December 2023, up from December 2022’s predicted $4.00 in earnings. Revenue estimates are also favorable at about $25.3 billion by December 2022 and approximately $29.0 billion by December 2023. The 13F metrics through 2021 show a rising trend in Advanced Micro Devices holdings along with its stock price.

Analysts Share Optimism

Analysts appear optimistic about Advanced Micro Devices’ future potential as the company repurchases shares and continues to expand its product portfolio. Advanced Micro Devices is reaping the rewards of a strong graphics chip market and gaming popularity. The company received a Buy rating from Bank of America analyst Vivek Arya. Analyst Stacy Rasgon of Bernstein & Co. put a $150 price target on the stock and raised his firm’s rating to Outperform. Rasgon noted that AMD continues to gain market share in areas such as client, server, graphics, and gaming consoles.

Bright Outlook

Advanced Micro Devices has seen some fluctuation in stock price over the past year, along with many other technology companies. However, the semiconductor company continues to gain ground in the industry. AMD’s year-to-date growth is very encouraging for investors, and future estimates speak to the stock’s potential for future growth.

Carvana Co. (CVNA) initially saw steady growth in 2021, though in recent months has faced a considerable decline. The company narrowly outperformed the S&P 500, and quarterly results had hedge funds selling during the fourth quarter. However, Carvana rose on the WhaleWisdom Index to a ranking of one from thirty-two. Carvana’s stock rose by approximately 35.8% through early February 2022, compared to the S&P’s gain of about 29.1%.

Carvana operates an e-commerce platform for buying and selling used cars. The company thrived during much of the coronavirus pandemic, benefitting from increased demand for used cars at a time when supply chain disruptions from the pandemic hindered the production of new automobiles. Carvana not only provides a wide selection of vehicles, but its platform allows consumers to obtain financing. Pandemic-related government stimulus checks were also helpful for many customers to facilitate down payments on their vehicles. Additionally, Carvana’s e-commerce approach of touchless delivery of vehicles to each customer’s home has had great appeal during a time of social distancing.

Reduced supply and surging car prices affect the company like a double-edged sword despite heightened demand for used vehicles. Consumers may be paying more, but Carvana’s costs also rose. Carvana employs strategic marketing initiatives and good customer support, including a recent Super Bowl ad, to promote their user-friendly car buying process that results in happy customers.

Hedge Funds Are Selling

Reviewing fourth quarter activity by hedge funds, the aggregate 13F shared held decreased to about 38.5 million from 39.5 million, an overall decrease of approximately 2.6%. Of the hedge funds, 22 created new positions, 44 added to an existing holding, 36 exited, and 34 reduced their stakes. In contrast, institutions increased their aggregate holdings by about 8.6%, to approximately 104.5 million from 96.2 million.

Mixed Multi-Year Estimates

Carvana has a projected decline in earnings for 2022, with a loss of -$1.22 per share. Revenue growth projections could bring revenue to $16.3 billion by December 2022, up from $12.6 billion for December 2021. A review of 13F metrics shows that funds held have been reasonably steady over the past year while the stock price fluctuated. Metrics between 2017 and 2022 demonstrate that while Carvana’s stock may be down at this time, it still shows long-term gains.

Analysts Lower Price Targets

The e-commerce retailer is seen as a Buy by many analysts; however, analysts such as Adam Jonas from Morgan Stanley view the stock as oversold and give it an Overweight rating. Jonas set a price target of $430 for the stock while noting that Carvana remains an apex predator in automotive retail. Analyst Nat Schindler of Bank of America lowered the firm’s price target on Carvana to $320 from $420 and kept a Buy rating on shares. Truist Securities analyst Naved Khan also maintained a Buy rating on shares and lowered the firm’s price target to $300 from $390. Stifel analyst Scott Devitt kept a Buy rating on Carvana’s shares and lowered the firm’s price target to $220 from $40.

Fair Outlook

Carvana’s recent loss of traction can’t be ignored, but as vehicle supply rebounds and consumer demand continues to be strong, there is good potential for growth. Analysts appear optimistic about the stock’s future potential in the automotive retail market, seen by a trend of Buy ratings. Future revenue estimates should be encouraging to investors.

PayPal Holdings, Inc. (PYPL) stock has underperformed the S&P 500, declining to roughly -3.0% compared to the S&P 500’s gain of around 31.6% over the past 2-years. Hedge funds were actively buying PayPal’s shares, though, with the slowdown in performance, the stock slid on the WhaleWisdom Index to a ranking of 34 from 23.

PayPal operates an electronic payments system to facilitate convenient and secure e-commerce to two customer segments: consumers and merchants. Consumers can use the digital platform to shop and transfer money to merchants, family, and friends. Merchants can set up PayPal business accounts to receive payments for their goods and services. Customers may use PayPal’s website, mobile application (app), or mobile payment subsidiaries Venmo and Xoom. PayPal generates much of its revenue through transaction fees and service subscriptions. PayPal offers financial services such as debit cards, credit cards, loans, shipping services and allows customers to buy, sell, or hold cryptocurrency.

The company has faced market volatility and challenges such as inflation’s impact on consumer spending, pandemic-related supply chain issues reducing transaction volume, and the cleanup of millions of illegitimate and inactive accounts set up by those taking advantage of rewards programs. Additionally, after an almost two-decade-long partnership with the online marketplace eBay, PayPal faced reduced transaction activity when eBay began paying its sellers directly rather than through PayPal, though still allowing shoppers to pay through PayPal.

Hedge Funds and Institutions Tweak Portfolios

The aggregate 13F shares held by hedge funds increased to approximately 207.3 million from 206.6 million, a positive change of about 0.3%. Overall, 31 hedge funds created new positions, 179 added to existing holdings, 64 exited, and 189 reduced their stakes. Despite, hedge funds adding to positions, institutions were selling and lowered their holdings by about 0.8% to 78.4 million from 79.0 million.

(WhaleWisdom)

Positive Multi-year Figures

Analysts expect to see earnings rise to $4.67 per share by December 2022 and $5.87 by December 2023. Revenue estimates offer encouragement, with predictions of approximately $29.4 billion for December 2022 and about $35.3 billion by December 2023. The 13F metrics between 2015 and 2022 reflect PayPal’s recently fluctuating stock price, while the trend for portfolio holdings demonstrated steady improvement before leveling off and declining in recent months.

(WhaleWisdom)

Analysts Lower Price Targets

While PayPal is still a key player in e-commerce, analysts have been lowering price targets. Mizuho Financial Group analyst Dan Dolev lowered the firm’s price target on PayPal to $175 from $200 while maintaining a Buy rating. Dolev also shared favorable observations about the stock, including that its payment value is accelerating, and engagement is advancing, despite eBay’s transaction processing changes. Analyst Harshita Rawat of AllianceBernstein Holding LP lowered the firm’s price target on PayPal to $140 from $180 and kept a Market Perform rating on shares. Needham & Co. analyst Christopher Brendler shared his optimism for PayPal, calling it a “long-term winner” despite recent changes with eBay. Brendler kept a Buy rating on PayPal’s shares and lowered its firm’s price target to $166 from $275. Barclays analyst Ramsey El-Assal kept an Overweight rating on PayPal’s shares following fourth-quarter results while reducing the firm’s price target to $200 from $250.

Potential Beyond 2022

Growth has slowed, but PayPal still has earnings potential. Its strong track record and future estimates may not be enough to bring an influx of new investors at this time, but the e-commerce giant still has appeal, and current shareholders may want to hold their shares. It’s certainly a stock to watch.

Alphabet, Inc. (GOOG) experienced soaring growth over the past year, dramatically outperforming the S&P 500. Alphabet’s stock rose by approximately 97.7% over the past 2-years compared to the S&P’s gain of about 36.5%. The holding company moved up on the WhaleWisdom Heatmap to a ranking of fifteen from thirty-five. However, hedge funds and institutions were actively selling despite exceeding Wall Street’s estimates.

Alphabet is a technology conglomerate holding company that is the parent company of numerous subsidiary companies organized through segments. Alphabet’s Google segment includes their primary Internet products: Search, Ads, Maps, Apps, Cloud, Android, Chrome, and Google Play. This segment also sells hardware products such as Chromebooks and Nexus. Their Other Bets segment includes businesses such as Google Fiber, Nest, Verily, X, and Google Capital. Alphabet leverages its search, web browsing, cloud computing, and mobile operating systems to generate revenue through the sale of advertising.

Hedge Funds and Institutions Trim Portfolios

Hedge Funds adjusted their portfolios in the third quarter, and the aggregate 13F shares held decreased to approximately 45.1 million from 46.2 million, a slide of about 2.3%. Overall, 34 hedge funds created new positions, 160 added to an existing one, 20 exited, and 253 reduced their holdings. Institutions also sold and lowered their holdings by about 2.1% to $203.4 million. The 13F metrics between 2017 and 2022 demonstrate Alphabet’s gradual upward trend.

(WhaleWisdom)

Encouraging Multi-year Figures

Analysts expect to see earnings rise over the next two years, with increases in growth estimated to bring earnings per share to $115.78 by December 2022 and $136.26 by December 2023. Year-over-year estimated increases may also bring revenue to close to $349.5 billion by 2023, up from a predicted $301.3 billion in 2022.

(WhaleWisdom)

Positive Feedback from Analysts

Analysts appear to recognize Alphabet’s strength in the market and raised price targets. In addition to exceeding Wall Street’s expectations, Alphabet also announced a 20-for-1 stock split. UBS Equities analyst Lloyd Walmsley was also optimistic following the announcement and boosted his price target to $3,900 per share, citing that the stock split is likely to bring more retail investors. It should be noted that the news isn’t all rosy. Alphabet’s Google business continues to face antitrust lawsuits and pressure from governments and states such as Texas, claiming that the search engine is abusing its dominance in online advertising. Google is currently seeking to get the Texas antitrust case dismissed.

Analyst Daniel Salmon of BMO Capital Markets noted the powerful cash-generating business model of Google Search and raised the firm’s price target on Alphabet Class A to $3,300 from $3,200, maintaining an Outperform rating on shares. MKM Partners analyst Rohit Kulkarni raised the firm’s price target to $3,375 from $3,150 and kept a Buy rating on shares. Analyst Scott Devitt raised Stifel’s price target on Alphabet to $3,500 from $3,200 with a Buy rating on shares, reporting another strong quarter of revenue and operating income. Monness, Crespi, Hardt & Co. analyst Brian White also raised the price target on Alphabet and kept a Buy rating. White raised his firm’s price target to $3,850 from $3,660 after the company reported strong fourth-quarter results, noting that while antitrust investigations may carry on, the company should benefit from current ad trends, gain strength in the cloud, and introduce metaverse innovations.

Favorable Outlook

Alphabet’s impressive market growth and future earnings estimates are encouraging. Analysts raised price targets and appeared optimistic about Alphabet’s ability to generate revenue moving forward. The opportunity to buy before the announced stock split may appeal to investors.