Breaking Finance News

Fidelity Contrafund Slashes Apple Holdings

The Fidelity Investments Contrafund cut it’s stake in Apple (NASDAQ: AAPL) by 9 percent, according to Reuters. The Contrafund is the largest active shareholder in Apple owning 9.2 million shares at the end of April. That’s down from 10.1 million shares in March after fund manager Will Danoff cut the funds stake by 12 percent during the first quarter.

Although Danoff says that investors have concerns about Apple’s decreasing profit margins and added competition from phone manufacturers like Samsung have had a negative effect, he still remains bullish. He says that the stock remains cheap and the company still has the ability to generate a lot of cash. He notes that the company was generating $1 billion of free cash flow per week.

Along with this news, Monday marks the beginning of the company’s eBook price fixing trial. The company argues that it did nothing wrong by working with five other publishers to craft an agency agreement allowing publishers to set prices on eBooks.

However, the presiding judge over the case has already said that she believes that the Department of Justice will be able to prove its case making the prospects for Apple winning the suit, bleak. Still, the company plans to fight the accusations.

In early trading Apple is down about 0.8 percent at $445.98. The stock has been in a slight uptrend since mid-May although well off of its recent highs.

Disclosure: As of this writing, Tim Parker was long Apple.

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