Apple stock sinks after Warren Buffett’s Berkshire Hathaway halves stake

Berkshire Hathaway has halved its stake in Apple, its second-quarter earnings report over the weekend showed. The Warren Buffett-helmed conglomerate now holds $84.2 billion in Apple stock — much less than the $174.3 billion it owned at the start of the year.

The news sent Apple shares down sharply on Monday. Shares fell more than 9% in pre-market trading but recovered slightly after the market opened. Apple’s stock price was down 5% shortly after trading began.

Berkshire Hathaway has reduced its stake in Apple for three consecutive quarters now. But Apple is still Berkshire Hathaway’s biggest stock investment, followed by Bank of America Corporation ($41.1 billion) and the American Express Company ($35.1 billion), as of June 30.

“Unless something really extraordinary happens, we will own Apple, and American Express, and Coca-Cola when Greg takes over this place,” the 93-year-old Buffett said during a question and answer session in May, referring to Greg Abel, his handpicked successor.

Apple’s stock price had begun to ease recently, following a three-month rally during which it gained more than 35% to a high of $237 in mid-July. The stock has soared since Apple unveiled its AI plan in early June during its Worldwide Developers Conference. Analysts have said Apple shares will only continue to surge in the long-term as they see its AI-powered iPhones revolutionizing the smartphone market. The company’s earnings report last week got cheers from Wall Street as sales beat expectations by nearly $2 billion, despite lagging in China.

While shares fell sharply Monday, Apple’s stock price is still up nearly 30% from three months ago. Apple is one of several Big Tech companies to falter on Monday, with the Nasdaq on track to see its worst day since March 2020.