Warren Buffett sold Apple stock due to underperformance and concerns over revenue and innovation

From Nasdaq: 2024-06-04 05:50:00

Apple (NASDAQ: AAPL) is underperforming this year, with less than a 1% stock price increase compared to the S&P 500’s 11% gain. Struggling to grow revenue, Apple may be falling behind in AI innovation as its flagship iPhone market matures.

Berkshire Hathaway (NYSE: BRK.A) reduced its stake in Apple for the second straight quarter, selling over 116 million shares, citing possible capital gains tax changes. Apple’s revenue fell 4% in Q2 2024, with challenges in China impacting iPhone sales and overall growth strategy.

With Apple’s economic moat possibly narrowing, as the company faces internal competition and delays in tech innovation, investors like Warren Buffett are selling Apple stock. The high P/E ratio of 30 for a company with declining revenue adds to concerns of a potential pullback in the stock.

The Motley Fool’s Stock Advisor team didn’t include Apple in its 10 best stocks to buy now, highlighting concerns over the company’s future performance. By investing in stocks with greater growth potential, investors may see substantial returns over time, as seen with past recommendations like Nvidia.



Read more at Nasdaq: Is This the Reason Warren Buffett Sold Apple Stock?