Apple’s Stock Underperformance
Apple Inc’s stock, represented by the ticker AAPL, has witnessed a 7% decline this year, trailing behind the S&P 500 index SPY. This decline is attributed to weakened demand from China, a pivotal market for Apple, challenges in the rapidly evolving AI sector, regulatory hurdles, and a general growth slowdown.
Berkshire Hathaway’s Bold Move
Berkshire Hathaway, renowned for its long-term investment approach, made waves by divesting about 10 million Apple shares in late 2023, constituting roughly 1% of its holdings. This significant sale marks a departure from Warren Buffett’s traditional investment style. Despite this divestment, Berkshire Hathaway still holds a sizable stake in Apple, with over 905 million shares, equivalent to approximately 5.9% of the tech behemoth.
Market Performance and Prospects
In 2024, Apple’s stock has experienced a 7.4% decrease, hitting a peak decline of 12% earlier this month. After a robust 47% surge in 2023, Apple is currently in a consolidation phase, with its stock price oscillating between $165 and $199. The stock’s future trajectory hinges on its ability to break out of this consolidation phase.
The Quest for $200
Breaching the psychological threshold of $200 could signal new heights for Apple’s stock, particularly amid positive trends in major indices. Should these indices maintain their upward trajectory, Apple may align with these trends and resume its upward trajectory, potentially surpassing previous records.
Following the closure of the market on Wednesday, March 20, Apple’s stock concluded at $178.67, marking a 1.46% increase.
This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
