Microsoft has better fundamentals, but buy Apple, says tech investor

Microsoft has better fundamentals, but buy Apple, says Heartland Financial CIO

Microsoft has better fundamentals, but buy Apple, says Heartland Financial CIO   11 Hours Ago | 02:58

Microsoft may have replaced Apple as the most valuable U.S. company, but don’t count Apple out, investor Nancy Tengler told CNBC on Friday.

“Clearly the fundamentals are better for Microsoft in terms of which space they’re in — the cloud space, the growth they’re experiencing — but I’m not willing to walk away from Apple at these levels,” the chief investment officer at Heartland Financial said on “Closing Bell.”

Microsoft’s market cap held an implied market valuation of $851.2 billion at Friday’s close, exceeding Apple’s market valuation of $847.4 billion.

Tim Cook, chief executive office of Apple Inc., speaks during an event at Lane Technical College Prep High School in Chicago, Illinois, U.S., on Tuesday, March 27, 2018. Apple is making announcements in a bid to win back students and teachers from Google and Microsoft Corp. 

Christopher Dilts | Bloomberg | Getty Images
Tim Cook, chief executive office of Apple Inc., speaks during an event at Lane Technical College Prep High School in Chicago, Illinois, U.S., on Tuesday, March 27, 2018. Apple is making announcements in a bid to win back students and teachers from Google and Microsoft Corp.

Tengler, who owns shares of both Apple and Microsoft, said she’s closer to selling Microsoft and buying Apple right now. “This is an interesting time to be adding.”

“We have to get used to the recalibration of iPhone flat sales, no transparency, what’s the next big thing,” she said. “We’re going to find it’s services and something we haven’t thought of yet. Look at the Apple Watch, it’s just kind of been a stealth outperformer.”

Apple shares have had a few rough weeks, releasing disappointing earnings on Nov. 1. The tech giant also announced it would no longer break out iPhone, iPad and Mac sales figures, which garnered a swift response from Wall Street.

However, Tengler dismissed analysts’ concerns.

“Wall Street gets embarrassed. They’re like a woman scorned. When they don’t get the information they want, then they begin to pile on,” she said.

She is betting that Apple will make the successful transition to the next big thing and will bring the Street along. It just may take some time, she added.

[“source=cnbc”]

Shares of Apple suppliers in Asia sink amid worries about iPhone demand

Philip W. Schiller, Senior Vice President, Worldwide Marketing of Apple, speaks about the the new Apple iPhone XR at an Apple Inc product launch event at the Steve Jobs Theater in Cupertino, California, September 12, 2018.

Shares of some major Apple suppliers fell in Asian trading Tuesday — some to multi-year lows — after the iPhone maker’s stock plunged on concerns about customer demand.

Apple dropped 5 percent overnight in New York trading after Lumentum, a manufacturer of lasers that can sense in 3-D, said it received a request from one of its largest customers to “materially reduce” shipments to them. Lumentum shares dropped nearly 33 percent. The company did not name Apple in Monday’s report, but previously listed the tech giant as its largest customer in a filing for fiscal year 2018.

Also on Monday, TF International Securities’ Ming-Chi Kuo reversed his view on iPhone XR sales by cutting his outlook for shipments by 30 million units. The reduction followed a Nikkei report earlier this month, citing supply chain sources, that Apple told Foxconn and Pegatron to stop plans for additional iPhone XR-related production lines.

The worries about slowing iPhone demand spilled over into shares of Apple suppliers in Tuesday trading in Asia, where most of the companies are based.

In Taiwan, Hon Hai Precision, better known as Foxconn, fell more than 2 percent to its lowest in nearly a month.

Pegatron briefly fell more than 5 percent to its lowest since May 2014, before recovering losses and trading higher. Largan Precision also temporarily tumbled more than 5 percent to its lowest since July 2016 before reversing and rising more than half a percent.

In Japan, Panasonic declined 2.5 percent and Alps Electric dropped nearly 5.8 percent, both to their lowest since late 2016. Nitto Denko fell more than 4 percent.

Hong Kong-traded AAC Technologies briefly fell more than 7 percent to its lowest in more than two years, before recovering much of its losses.

In Shenzhen, Luxshare fell more than 5 percent to its lowest in a month, while Suzhou Anjie Technology fell more than 1 percent.

The major Asian stock indexes pared opening losses by midday Tuesday..

[“source=cnbc”]