Apple Stock News: Buffett Interest in AAPL Should Calm Investors

Apple Stock News

Buffett Interest in AAPL Should Calm Investors

Apple Inc. share prices have suffered this year after the company reported its first decrease in revenue in 13 years. Apple’s flagship product, the iPhone, saw a decline in sales which was a major reason for the dip in revenue as the iPhone accounts for two-thirds of the company’s sales and profits.

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Apple has fallen out of favor with investors after the report as people continue to question the ability of the company to turn things around. Many investors and analysts are doubtful that the iPhone 7 coming out later this year will have enough advancements and new features to entice consumers to pay for the upgrade from the iPhone 6 and 6s. In fact, billionaire investor Carl Icahn has reported that he completely sold out of his AAPL shares citing additional concerns about the company’s relationship with China.

On the long-term, though, Apple shares may be looking up. Warren Buffett, one of the world’s most famous investors, appears to be expected steady long-term growth from the tech company. Buffett’s company, Berkshire Hathaway, specializes in a technique called “value investing” which entails the buying and holding of stocks from companies that have strong cash flow, decent dividends, and experienced management when the stocks are unfavorable with the market. Apple fits this description perfectly with the stock falling 12% since the start of 2016. Berkshire Hathaway now owns more than $1 billion in AAPL stock, making the company the 56th largest shareholder in the company.

The market has already started to respond to this move by Buffett with shares moving up in the last few days. Still, Apple needs to focus on improving its fundamentals and restoring faith in both investors and consumers if it wants to make up for the losses it’s felt this year.

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