Apple Inc (NASDAQ:AAPL) latest share price decline has attracted overseas tech funds. The latest of such funds to buy a ‘little bit’ into Apple stocks was DNB Nordic Technology. This is not the first time that the fund is investing in the Cupertino company. The fund had exited the stock in spring of 2015.
Too Early for Big Buys
The technology funds current portfolio Manager, Anders Tandberg-Johansen stated that the cheap stock rates are attractive but it is yet early to ‘take a big position’ in Apple Inc (NASDAQ:AAPL).
The fund manager pointed out that the ‘stretched’ earnings per share for 2016 will drive down to as much as $8. The slowdown is due to the fall in the rates at which the iPhone is replaced.
Though he does not expect the iPhone maker to lose much of its market share, the challenges in 2016 would be tougher he forecast. This is because many in 2015 have invested in iPhones.
DNB likes Google
According to another technology portfolio manager, Sverre Bergland, the best positioned is Google’s holding company, Alphabet Inc (NASDAQ:GOOGL).
Bergland commented that Google stock have great valuation, though the shares are not cheap. However, the search engine giant is regarded as one of the better internet stocks, under the current conditions.
DNB Fund steers clear of Facebook stock, since it considers the barriers for Google to be higher because of the nature of business – search engine, in comparison to engagement based services on Facebook.
FANG – Too expensive
The technology fund does not recommend any of the top five pure technology players – Facebook Inc, Amazon.com, Netfliz Inc or Alphabet, since they are expensive. The alternatives to these are the lesser priced, oracle Corp, SAP SE as well as Marvell Technology Group Ltd.
SAP for 2016
DNB tech fund recommends SAP for its higher earnings growth potential in 2016. The upside for the company is its stable business model.
Apple Inc (NASDAQ:AAPL) and other technology stocks are good risk, due to their low rates, according to Tanderb-Johansen.