BlackRock, a.k.a. the world’s largest asset manager, has just made a massive investment in Apple, according to its latest Securities and Exchange Commission filing.
The firm upped its investment in Apple to a whopping 322 million shares, meaning that now owns the equivalent of 6.1 percent of Apple’s outstanding shares — with a current monetary value of $38.4 billion.
Apple has invested $1 billion in Chinese Uber rival Didi Chuxing in a move that continues Apple’s push into China and confirms the company’s interest in shaking up the automotive industry.
According to Tim Cook, the deal “reflects our excitement about their growing business … and also our continued confidence in the long term in China’s economy.” Perhaps more importantly, it could give Apple strategic insights and competitive advantages when it comes to Apple Pay and a possible Apple Car.
Stocks have been getting crushed all year, but according to Goldman Sachs, now is the perfect time to starting betting on Apple options.
Goldman Sachs’ options team has pointed out that Apple options prices are especially low right now compared to the the S&P 500, making it a great target for purchasing a ‘straddle’, which could score investors a big payday if Apple shares move higher or lower than currently expected.
Straddle options work by allowing investors to purchase a bullish and bearish option on a stock so that they make money off the volatility of shares. It’s an advanced investment for most traders to make and it’s not cheap, but Susquehanna’s Stacey Gilbert explains that it’s cheap relative to volatility expectations for the overall market.
We can add another award to Apple’s long list, although the company might not be too happy to accept it: The iPhone maker’s stock lost the most value of any tech company this year.
The news comes out of a study from USA Today that reports a shocking average 14 percent decline in value from 462 tech companies. That drop resulted in total losses of $529 billion, but Cupertino is the lead horseman in this year’s stockpocalypse.
Former Apple CEO John Sculley has confirmed that he and a group of investors were lining up a bid for BlackBerry, but they waited too long and lost out. In an interview on Bloomberg Surveillance, Sculley reveals how he was surprised when the struggling smartphone maker announced a $1 billion investment deal earlier this week.
CNBC reported Monday that billionaire hedge-fund investor Julian Robertson sold all of his shares in Apple because he’d recently read a biography of founder Steve Jobs, and found the former CEO of Apple to be a “really awful person.”
Robertson admits that the stock did very well for him, but would rather “let someone else make the money from now on,” as he said on CNBC’s investment show, Closing Bell.
What goes up must come down, in physics and in investment. Stock prices for Apple have hit a low recently, down about a fourth of it’s value. Analysts believe that upcoming taxes on capital gains and investment dividends have stock holders rushing to get rid of as much as they can to avoid record tax hikes.
“No individual investment can defy gravity,” said the deputy chief investment officer for Wells Fargo, Erik Davidson.