All of the Guru investors that GuruFocus follows have reported
the contents of their third quarter portfolios, and tech stocks
were a popular choice among them. Here are the Gurus that bought
the technology stocks Google (
GOOG
), Intel (
INTC
) Apple (
AAPL
).
Google (
GOOG
)
Thirteen investors GuruFocus follows either bought the stock for
the first time or added more shares to their existing holdings,
including
George Soros
,
Julian Robertson
and
John Burbank
.
Sixteen also either decreased or eliminated their positions in
Google.
Google's stock gained 12.5% in the first nine months of the year,
but after a pullback is up only about 4% year to date.
In the past five years, it has grown its revenue per share at a
rate of 25.1%, EBITDA at 25.1%, free cash flow at 41.4% and book
value for 26.4%. Last year it made $37.9 billion in revenue and
$9.7 billion in net income, and it has $45.7 billion in cash on
its balance sheet and $7.2 billion in long-term liabilities and
debt.
Google, a web search and advertising company , in the third
quarter and first nine months of 2011 derived 96% of its revenue
from advertising, compared to 94% and 95% for the third quarter
and first nine months of 2012, respectively. Google's dramatic
growth has benefited from the wave of advertising moving online
from offline. Currently the company's business is changing as
mobile search queries increase and desktop query growth
decreases.
Google expects the cost of revenues will increase in the future
as traffic acquisition, data center, content and acquisition
costs, and credit card and other transaction fees, manufacturing
and inventory-related costs increase.
As an additional source of growth will be acquisitions. Its most
recent purchase was Motorola, which it acquired on May 22, 2012,
and whose operating results boosted Google's third quarter
income.
Intel (
INTC
)
Eleven Gurus either introduced Intel to their portfolios or
increased their existing stakes in the company in the third
quarter. Twelve also decreased their or eliminated their Intel
stakes.
Intel's stock has declined almost 20% year to date.
Intel has grown its revenue per share at a rate of 9.6%, EBITDA
at 21.7%, free cash flow at 15.7 and book value at 7.1% annually
over the last five years. Revenue last year came in at $54
billion, an increase from $43.6 billion the previous year, and
net income was $12.9 billion, up from $11.7 billion.
The company has $14.4 billion in cash and $13.2 billion in
long-term liabilities and debt on its balance sheet.
Intel's CFO commented on its third quarter 2012 results: "Third
quarter revenue came in at $13.5B, flat from the second quarter
and slightly better than our revised expectations. Relative to
the normal seasonal growth we see in the third quarter our
business was negatively impacted by macroeconomic weakness
leading to softness in both the consumer and enterprise market
segments. In addition, we saw a reduction in inventories in the
PC supply chain versus the normal increase in the third quarter.
Gross margin of 63.3% was flat from the second quarter with lower
unit costs being offset by factory EOL charges and slightly lower
average selling prices. Operating income of $3.8B was 29% of
revenue and flat sequentially. Net Income of $3.0B and earnings
per share of $0.58 were up 5% and 7% respectively from the second
quarter."
Apple (
AAPL
)
In the third quarter, no new Gurus bought Apple stock, 7 added to
their holding, and 10 reduced or sold out completely.
Apple's stock increased 39% year to date.
In the last five years, the company increased its revenue per
share at a rate of 44.5%, EBITDA at 64.7%, free cash flow at
56.5% and book value at 50.2%. In fiscal year 2012, it pulled in
$156.5 billion of revenue, an increase from $108.3 billion the
previous year, and net income of $41.7 billion, an increase from
$25.9 billion the previous year.
Apple's balance sheet shows $48.7 billion in cash and $19.3
billion in long-term liabilities and debt.
The company which makes innovative products such as the iPod and
iPhone, operates in a highly competitive market. As it continues
to expand its personal computer, mobile communication and media
devices market opportunities, it expects competition to intensify
as competitors imitate aspects of its products or collaborate to
produce better products, it said in its 2012 annual report.
"The company's future financial condition and operating results
depend on the company's ability to continue to develop and offer
new innovative products and services in each of the markets in
which it competes," it said.
To see more about what investors bought in each sector, try
GuruFocus' All-In-One Screener
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