Apple has had a terrible start to 2024 — and one man could make it worse.
The tech giant’s stock has consistently tumbled in the first two months of the year. It is currently down almost 10% since the start of 2024, to less than $170 per share. This comes as the AI boom has helped other tech companies’ stocks soar, including Microsoft and Nvidia.
Still, one analyst warns that the worst could still be yet to come for Apple, the second-most valuable company in the world.
Apple stock could be “slaughtered” if its biggest non-ETF shareholder, Warren Buffett’s Berkshire Hathaway, further trims his stake in the company, Mizuho analyst Jordan Klein told investors in a note this week.
Berkshire Hathaway, which owns GEICO and Dairy Queen, sold off about 1% of its stake in Apple in the last quarter of 2023, the company revealed in SEC filings this year.
Klein went on to suggest that Buffett is likely already selling off more shares as one of his largest positions looks to be in trouble. If that prove true, once the information comes out, it could mean disaster for Apple, he said.
“He knows when that 13F comes out showing he started to sell, that Apple shares will get killed as retail investors rush for the exit,” Klein wrote.
Apple’s terrible year so far
In January, Apple lost its spot as the world’s most valuable company to Microsoft, which now has a market cap of $3 trillion. Apple’s market cap stands at $2.6 trillion.
A few brokerages also downgraded Apple stock to a “sell” rating in January over concerns about iPhone demand, especially in China. The company reported in its latest quarterly earnings that its net sales in China fell 13% year-over-year in the three months ending Dec. 30. A new report shows that trend is continuing in 2024: iPhone sales in China fell 24% year-over-year in the first six weeks of 2024, according to analysts at Counterpoint Research.
And last week, Apple was removed from Goldman Sachs’ “Conviction List,” the bank’s list of top stocks.
Apple stock was mostly level in Wednesday afternoon trading.