Billionaire Steven Cohen sold Amazon stocks and bought Apple stocks, diversifying in AI sector.

From Nasdaq: 2024-09-25 18:30:00

Investment firms managing over $100 million in stocks must file Form 13F with the SEC quarterly, providing insight into the moves of sophisticated investors like Point72 Asset Management’s Steven Cohen. Last quarter, Point72 sold 600,000 shares of Amazon and bought almost 1.6 million shares of Apple, reflecting potential shifts in the AI landscape.

Amazon’s aggressive investment in AI initiatives includes a $4 billion stake in start-up Anthropic and an $11 billion infrastructure investment for data centers. Despite Amazon’s spending, Point72’s Cohen trimmed the firm’s position, possibly due to concerns about the return on these investments. Apple, on the other hand, may offer growth potential with its iPhone 16 launch and AI integrations.

Cohen’s decision to buy Apple stock adds diversification and exposure among mega-cap AI players. While Amazon has been making moves in AI for a long time, Apple’s initiatives are newer and less baked into its stock price. This could position Apple for potential growth, making Cohen’s move a smart diversification strategy given the competitive AI landscape.

Cohen’s purchase of Apple and trim of Amazon stock suggest a strategy of diversification and hedging positions in the crowded AI space. Both Amazon and Apple offer solid choices in the AI landscape. For investors with a long-term horizon, replicating Cohen’s diversification strategy could be beneficial, especially considering the potential for growth in the AI sector.



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