Warren Buffett made headlines in the fourth quarter of 2023 by reducing his stake in Apple by 1%.
However, Apple’s woes didn’t end there. The tech giant has faced a turbulent start to 2024, with its stock consistently tumbling in the first two months of the year.
Despite the broader AI boom that has propelled the stocks of companies like Microsoft and Nvidia, Apple’s stock has plummeted nearly 10% since the beginning of 2024, trading at less than $170 per share.
Amidst this downward trend, Mizuho analyst Jordan Klein warned investors that Apple could face further trouble if its largest non-ETF shareholder, Warren Buffett’s Berkshire Hathaway, continues to trim its stake in the company.
Berkshire Hathaway had already sold off about 1% of its stake in Apple during the last quarter of 2023, as revealed in SEC filings earlier this year.
Klein speculated that Buffett may be offloading more shares, signaling trouble for Apple. Once this information becomes public, it could trigger a rush among retail investors to sell their Apple shares, further exacerbating the company’s woes.
The prospect of Buffett reducing his stake in Apple has raised concerns among investors, with Klein suggesting that such a move could lead to a significant decline in Apple’s stock price.
Apple’s terrible year so far
In January, Apple lost its title as the world’s most valuable company to Microsoft, whose market capitalization reached $3 trillion, surpassing Apple’s $2.6 trillion.
Adding to Apple’s challenges, several brokerages downgraded its stock to a “sell” rating in January, citing concerns about iPhone demand, particularly in China.
Apple’s latest quarterly earnings report revealed a 13% year-over-year decline in net sales in China for the three months ending December 30.
Unfortunately for Apple, the downward trend in iPhone sales in China has persisted into 2024. According to analysts at Counterpoint Research, iPhone sales in China dropped by 24% year-over-year in the first six weeks of 2024.