Home > Latest News > Apple Stock Tumbles, Is Warren Buffett Now Set To Slaughter It?

Apple Stock Tumbles, Is Warren Buffett Now Set To Slaughter It?

Apple shares have tumbled overnight more than 4% as investors move to dump the stock after the US Federal Government launched landmark lawsuit against Apple, accusing the tech giant of monopolising the smartphone market and crushing competition.

Regulators on both sides of the Atlantic are now probing Apple’s business practises and this is, unnerving investors with fears over fines and threatening its market dominance.

In the US, the Justice Department and 16 attorneys general are suing the iPhone maker for violating antitrust laws. And in Europe, the company is said to be facing probes about whether it’s complying with the region’s Digital Markets Act.

2024 has been a shocker year for the Company that has already been fined billions because of the questionable business practises.

Afghan health workers carry a dead body of a victim at the site of suicide bombing in Kabul, Afghanistan, Tuesday, Aug. 29, 2017. The area where the explosion took place, in the center of the Afghan capital, is home to many businesses. The U.S. Embassy and the NATO headquarters are about 500 meters (yards) away. (AP Photo/Rahmat Gul)

Now all eyes are on Warren Buffett at Berkshire Hathaway to see what he will do with insiders tipping that if he sells Apple stock “could be slaughtered”.

Even after the fourth-quarter 2023 sale of Apple stock, Apple remains 45.5% of Berkshire’s public equity portfolio, with Berkshire owning 5.9% of the company.

This year Apple stock has consistently tumbled with over $568 billion wiped off their share value already this year.

This drops the valuation of Apple to A$3.6 trillion resulting in Apple losing its mantle as the world’s most valuable company to Microsoft.

It is currently down almost 10% since the start of 2024, with the share trading at $171. Questions are also being asked about the lack of innovation at Apple spanning AI and foldable smartphones.

Recently the business dumped their billion-dollar electric car program.

At 92, Warren Buffett has led Berkshire Hathaway to its highest operating profit ever off the back of Apple shares.

One analyst warns that the worst is yet to come for Apple, the second-most valuable company in the world.

Apple stock could be “slaughtered” if its biggest non-ETF shareholder, Warren Buffett’s Berkshire Hathaway, further trims his stake in the company, Mizuho analyst Jordan Klein told investors this week and that was before last night’s announcement by the US Justice Department.
Berkshire Hathaway, which owns GEICO and Dairy Queen, sold off about 1% of its stake in Apple in the last quarter of 2023, the company revealed in SEC filings this year.

Klein went on to suggest that Buffett is likely already selling off more shares as one of his largest positions looks to be in trouble. If that prove true, once the information comes out, it could mean disaster for Apple, he said.

“He knows when that 13F comes out showing he has started to sell, Apple shares will get killed as retail investors rush for the exit,” Klein wrote.

Share advisor is already downgrading Apple stock to a “sell” rating over concerns about iPhone demand, especially in China is falling.

The company reported in its latest quarterly earnings that its net sales in China fell 13% year-over-year in the three months ending Dec. 30.

Currently Apple CEO Tim Cook is in China trying to spruik Apple after Chinese consumers moved to Android based models over Apple’s iOS.

A new report shows that trend in China continuing in 2024: iPhone sales in China fell 24% year-over-year in the first six weeks of 2024, according to analysts at Counterpoint Research.

And last week, Apple was removed from Goldman Sachs’ “Conviction List,” because it’s not seen as a ‘top stock’ anymore.

 

 

 

 

 

 



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