Here's What Impacted Apple (AAPL) in Q2

Fred Alger Management, an investment management company, released its “Alger Spectra Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the equities rebounded significantly following a challenging first quarter. In this environment, the fund’s Class A shares outperformed the Russell 3000 Growth Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Alger Spectra Fund highlighted stocks such as Apple Inc. (NASDAQ:AAPL). Apple Inc. (NASDAQ:AAPL) is an American multinational company that designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories. The one-month return of Apple Inc. (NASDAQ:AAPL) was 11.67%, and its shares gained 12.63% of their value over the last 52 weeks. On September 22, 2025, Apple Inc. (NASDAQ:AAPL) stock closed at $256.08 per share, with a market capitalization of $3.8 trillion.

Alger Spectra Fund stated the following regarding Apple Inc. (NASDAQ:AAPL) in its second quarter 2025 investor letter:

"Apple Inc. (NASDAQ:AAPL) is a leading technology provider in telecommunications, computing, and services. Its proprietary iOS operating system represents a unique competitive strength, driving strong engagement with consumers and enterprises, and fostering purchases of high-margin services such as music, apps, and Apple Pay. During the quarter, shares detracted from performance after the company reported fiscal-second quarter results that broadly met analyst estimates but management lowered guidance citing tariff-related pressures on gross margins. While a potential foldable phone launch in 2026 may reinvigorate growth, the stock currently faces headwinds due to investor concerns about Apple’s relatively slower AI innovation compared to competitors. We remain constructive on Apple’s long-term prospects given its dominant platform and opportunities to expand into new verticals."

Apple Inc. (NASDAQ:AAPL) is in 8th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 156 hedge fund portfolios held Apple Inc. (NASDAQ:AAPL) at the end of the second quarter, which was 159 in the previous quarter. Apple Inc. (NASDAQ:AAPL) reported revenue of $94 billion in the June quarter, reflecting a 10% year-over-year increase. While we acknowledge the potential of Apple Inc. (NASDAQ:AAPL) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Apple Inc. (NASDAQ:AAPL) and shared the list of stocks buzzing after important analyst calls. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.