NEW YORK – Apple Inc investors are shrugging off concerns raised by two shareholders about children getting hooked on iPhones, saying for now a little addiction might not be a bad thing for profits.
Hedge fund JANA Partners LLC and the California State Teachers’ Retirement System (CalSTRS) pension fund said on Saturday that iPhone overuse could be hurting children’s developing brains, an issue that may harm the company’s long-term market value.
But, some investors, said the habit-forming nature of gadgets and social media were one reason companies such as Apple, Google parent Alphabet Inc and Facebook Inc added $630 billion to their market value in 2017.
“We invest in things that are addictive,” said Apple shareholder Ross Gerber, chief executive of Gerber Kawasaki Wealth and Investment Management.
He also owns stock in coffee retailer Starbucks Corp, casino-runner MGM Resorts International and alcohol-maker Constellation Brands Inc.
“Addictive things are very profitable,” Mr Gerber added.
Still, the investment community is increasingly holding companies to higher social standards, and there is some concern that market-leading tech companies could draw attention from regulators much like alcohol, tobacco and gambling companies have in the past.
Apple, Alphabet and Facebook could not immediately be reached for comment on Monday, but Facebook has said social media can be beneficial if used appropriately.
Apple shares traded marginally lower on Monday. CalSTRS holds $1.9 billion in Apple stock, a sliver of the company’s about $900 billion market value, while JANA declined to disclose the size of its smaller stake.
