This week has been a rough start for Apple (AAPL) as the tech giant’s stock is down 4% due to institutional investor news. Warren Buffett’s Berkshire Hathaway has trimmed its AAPL stock position, leading to a drop in shares.
While Berkshire Hathaway still holds a significant position in Apple, the reduction in holdings by Buffett’s company has influenced the stock price on a day when negative momentum is already affecting many stocks. This update from the “Oracle of Omaha” may prompt other investors to consider selling AAPL.
Buffett’s recent actions have impacted the tech sector as a whole, including other major players. Despite the downward trend in AAPL stock and its peers, investors should not panic. Let’s delve deeper into Buffett’s decision and its implications.
Key Points About Buffett’s AAPL Stock Decision
- Berkshire Hathaway disclosed the change in its AAPL stock position in its second-quarter earnings report.
- The company halved its stake from $174.3 billion to $84.2 billion, maintaining around 400 million shares as of June 30.
- This is the third consecutive quarter where Berkshire has reduced its Apple position, although AAPL stock remains its top holding.
- AAPL stock initially dropped by 9% in pre-market trading but has since recovered slightly, currently down by 4%.
- Buffett has praised Apple since Berkshire first acquired its stock in 2016, attributing value to his firm.
- Besides Apple, Berkshire also trimmed its stake in Bank of America by $3.8 billion.
- Despite the sell-off, Apple reported strong Q3 earnings with steady revenue and EPS growth, reaching a new high in services revenue.
It’s important to note that the opinions expressed in this article are those of the writer and do not reflect any positions in the mentioned securities. Samuel O’Brient is a Reporter for InvestorPlace, covering financial markets, global economic trends, and public policy.
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