Billionaire Steven Cohen Divests Apple Stock, Invests in Rising AI Company

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Billionaire hedge fund manager Steven Cohen has made significant investment changes, selling his entire stake in Apple, which was previously his second-largest holding, and initiating a new position in Axon Enterprise, an artificial intelligence company that has seen a remarkable 500% increase in value over the past 30 months. Cohen's firm, Point72 Asset Management, has accumulated $38 billion in profits since its establishment in 1992, making him one of the most successful hedge fund managers in history.

Cohen's decision to sell Apple comes as the tech giant faces challenges, including a reported decline in iPhone sales in China by more than 18% during the December quarter. Furthermore, Apple’s potential loss of $20 billion in annual services revenue looms due to an upcoming court ruling regarding its agreement with Google for default search placement in the Safari browser.

In contrast, Axon Enterprise, which is known for its Taser brand and digital evidence management systems, reported a 32% revenue increase in the third quarter, hitting $544 million. The company is expanding its portfolio with innovative AI features that enhance law enforcement capabilities. Despite its high valuation—operating at 120 times adjusted earnings—Axon's growth trajectory remains strong, positioning it as a leader in the public safety market.

Investors are urged to consider the contrasting fortunes of these tech giants, reflecting shifting market dynamics and consumer preferences.

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