Warren Buffett's Berkshire sold 25% of Apple shares, leading to 1% stock drop.

From CNBC: 2024-11-04 12:17:46

Berkshire Hathaway sold a large chunk of Apple shares, reducing its stake by about 25% during the third quarter. Despite the sale, Berkshire still held roughly $69.9 billion worth of Apple shares at the end of September, making Apple its biggest position. Berkshire’s cash pile has exceeded $300 billion.

Apple stock fell 1% in reaction to the news, coming out of a three-session losing streak. The stock was down 5.5% from its record-high close of over $236 on Oct. 21. Loop Capital lowered its Apple price target to $275 per share from $300, implying nearly 24% upside from Friday’s close.

Apple’s better-than-feared quarterly earnings release was followed by Berkshire’s sale of Apple shares. Wall Street remains mixed on the iPhone maker, with Loop Capital lowering its price target and Morgan Stanley praising Apple’s operating margins. BofA analysts noted global App Store revenue and download increases in October.

Jim Cramer advised investors to ignore the noise and “own it, don’t trade it” regarding Apple stock. Berkshire’s sale of Apple shares does not reflect the company’s health. Cramer suggested Buffett may be taking profits due to the stock’s significant increase. Apple investors face a barrage of headlines, but Cramer recommends staying focused on the big picture.



Read more at CNBC:: Jim Cramer on Apple after more selling from Warren Buffett’s Berkshire