Berkshire Hathaway, led by Warren Buffett, reportedly offloaded 10 million Apple Inc. shares in Q4, sparking investor concerns amid AAPL’s 11.6% YTD decline. In contrast, the Nasdaq 100, propelled by robust performances from AI-driven giants such as Nvidia (NVDA) and Microsoft (MSFT), surged 6.4% during the same period. Analysts speculate Buffett’s continued selling could impact AAPL’s share price significantly, given his substantial stake—one of his largest holdings. Apple faces challenges like weaker iPhone sales in China and concerns about falling behind in the AI race.
AAPL stock remains an underperformer in the Magnificent Seven group, dropping 11.6% YTD while the Nasdaq 100 rose 6.4%, driven by AI-driven giants like Nvidia and Microsoft. Apple’s lackluster performance in 2024 is attributed to weak iPhone sales in China, fears of lagging in the AI arms race, and setbacks related to its App Store monopoly.
Despite headwinds, the prevailing concern affecting Apple stock may be Warren Buffett’s reduced stake. Berkshire Hathaway disclosed selling 10 million Apple shares in Q4, though it remains a major stockholder with over 905 million shares. Analysts, like Mizuho, express worry that further selling by Buffett could negatively impact AAPL’s share price, causing panic among retail investors.
A Mizuho desk analyst stated that if Buffett continues selling, the stock may face significant declines, emphasizing Buffett’s role as the third-largest shareholder with nearly a 6% stake. The analyst anticipates retail investors rushing to exit if Buffett’s 13F filing reveals ongoing sales, considering the challenges Apple faces.
Buffett, having profited significantly from his AAPL investment, might not surprise analysts if he continues selling, especially given the challenges the tech giant is navigating. Apple’s recent struggles, including waning iPhone demand, Vision Pro feedback disappointment, and AI strategy concerns, contribute to its lackluster performance. Some fear Apple stock may be used as a fund source for investors pivoting into AI frontrunners like Nvidia, Microsoft, and Meta.
Disclaimer: The information provided is based on various media reports and should be interpreted as such. Always consider conducting thorough research and consulting financial professionals before making investment decisions.
