Third Point’s Daniel Loeb sees room for Apple’s stock price to climb

Billionaire hedge fund manager Daniel Loeb sees room for Apple’s stock price to climb, especially if the technology company successfully harnesses artificial intelligence for its iOS mobile operating system.
“Despite the stock’s recent strong appreciation, we see room for significant upside ahead as the magnitude of this new AI opportunity surprises,” Loeb wrote to his investors in his Third Point Q2 2024 Investor Letter. Third Point took a position in Apple in April, Loeb revealed.
Third Point Q2 2024 Investor Letter’s bullet points regarding Apple (AAPL):
• Despite its dominance as a business, the stock had become increasingly under-owned by institutional investors and its relative multiple had compressed toward a multi-year low due to several years of stagnant earnings growth, exacerbated by more recent fears that Apple may turn out to be an AI loser.
• Third Point’s research led it to a belief that AI-related demand could drive a step change improvement in Apple’s revenue and earnings over the next few years.
MacDailyNews Take: Hopefully, it’s been a productive summer for the Apple Intelligence team that will continue over multiple subsequent quarters as the company works to fulfill the myriad promises made at WWDC24.
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