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Apple Shares Soar 9% on News of Warren Buffett Stake in Company

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Apple shares have soared 9 percent since American business magnate Warren Buffett revealed his company's $1.2 billion stake in the company on May 16 (via Fortune).

Apple stock looked to be on the wane following Apple's earnings call at the end of April, when the company announced its first ever drop in iPhone sales and its first year-over-year revenue drop in 13 years.

7802035.jpg

Shares of Apple subsequently fell below $90 for the first time in nearly two years amid investors' concerns over the slump. Later it was revealed that Apple investor Carl Icahn had earlier decided to sell his stake in the company due to concern over China's attitude towards Apple, while a second Apple investor, David Tepper, had also dumped shares as its value continued to lessen.

However, just over two weeks ago, a regulatory filing by multinational conglomerate Berkshire Hathaway - which is run by Warren Buffett - revealed that as of March 31, the company owned 9,811,747 shares in Apple stock. Since then, shares of Apple have risen by 9 percent and breached the $100 mark, its highest point in a month.

Buffett has something of a reputation for being able to affect stocks, according to Fortune, which points to a dramatic 11 percent upturn of Kinder Morgan shares in February, shortly after Berkshire Hathaway disclosed its stake in the company.

However, Apple has also enjoyed a reversal of fortune in recently reported production targets for its next-generation iPhone 7, which is expected to launch this September.

Contradicting previous claims of projected weak demand for the upcoming device, Apple has reportedly asked its Asian suppliers to prepare for the highest iPhone production target in "about two years".

Apple investors also appeared unperturbed by news this week that the company's retail expansion in India may fall through, following a ruling from the Indian government that Apple must sell locally sourced goods if it wants to open stores in the country.

Apple remains eager to expand its business in India, where last quarter the company saw its revenue grow 56 percent, surpassing $1 billion. CEO Tim Cook's recent weeklong visit to the country garnered significant media attention and Apple will have regarded it as a positive step towards its global expansion goals.

Article Link: Apple Shares Soar 9% on News of Warren Buffett Stake in Company
 
Article Link
https://www.macrumors.com/2016/05/27/apple-shares-soar-news-warren-buffett-stake/
As an owner of some Apple's shares, this news makes me happy. I would be glad for the price to get back up to $130 again though..
 
There's always a very rational reason pushing retail investors to sell off their beloved stake in Apple.

But this reason is often completely fabricated. For example, it was very well known that Apple would have reported a non-record quarter and shares moved accordingly in the last months, pushing the stock to an unbelievable P/E of less than 9 (implying a loss of about 90% revenues in 10 years).

When the widely expected data was released, the stock moved sharply down, again, with doomsday stories and, guess what?, very well timed news about Icahn and other investors dropping the stock. The perfect storm.

As a consequence, retail investors panicked, igniting a downward spiral.

The stock is up 9% not because of Buffett, but because it was irrationally taken down by FUD created by speculators, the same people who are feasting today on mom & pop lost money.
 
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gnasher729 said:
But someone posted it would reach $50 within a year?
Click to expand...
50 is of course total bull s*hit because then Apple could buy all it´s shares in 3 years and one lucky guy who would not sell his share owns the whole company. The news of Buffett opened peoples eyes and they realized that the whole thing was way overdone by stupid media.
 
American Hero said:
Wow, so because one man owns millions of shares.... That must magically mean the price should go up now.

Makes total sense. I guess it's all about one person and not about the actual performance and potential of the company.
Click to expand...
No, it was the news that made investor do the math for once!
 
American Hero said:
Wow, so because one man owns millions of shares.... That must magically mean the price should go up now.

Makes total sense. I guess it's all about one person and not about the actual performance and potential of the company.
Click to expand...

It seems so, I remembered when he invested in Tesco and their share price went up temporarily.
 
I guess no one understands each investors style / history... Some investors are traders, meaning they are in to make money in the short term - say months to perhaps a year or two. Buffett is a long, long, long term investor. His strategy is to buy a company he likes and hold it. Hold it for years and years and years. If you look at J&J (he made a fortune off the back of this investment) he just sat though any period the stock was down. He will just sit and sit and sit until it makes him money - it may boost confidence for the 10 year outlook but in the mean time Apple could be all over the place.
 
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Unless it just keep shooting up massively, I'm going to dump it as soon as I make my money back. I wanted to just stay in the position for a few years, but it has been too wild for me.
 
American Hero said:
Wow, so because one man owns millions of shares.... That must magically mean the price should go up now.

Makes total sense. I guess it's all about one person and not about the actual performance and potential of the company.
Click to expand...

Stock price is rarely based on those, it fluctuates mostly on hype or fear/ irrational expectations/manipulations or a combination of these.
 
So he's a good guy now as a recent big AAPL buyer.

Then, as a large shareholder, he makes some public suggestions for changes from the "status quo" and we'll rip into him, his photo, etc... calling him all sorts of ugly names.

Later, he'll sell all of his shares and we'll rip into him, his looks, his age, his dog & children, etc along with phrases like "good riddance" and something about crawling back under a rock?

Doesn't that about sum it up? ;)
 
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American Hero said:
Wow, so because one man owns millions of shares.... That must magically mean the price should go up now.

Makes total sense. I guess it's all about one person and not about the actual performance and potential of the company.
Click to expand...

Yes apparently so, just like the drop in share price was manipulated by nasty freeloader investors, and it had absolutely nothing to do with Apples significant drop in sales and performance and market share. :rolleyes:
 
MacRumors said:



Apple shares have soared 9 percent since American business magnate Warren Buffett revealed his company's $1.2 billion stake in the company on May 16 (via Fortune).

Apple stock looked to be on the wane following Apple's earnings call at the end of April, when the company announced its first ever drop in iPhone sales and its first year-over-year revenue drop in 13 years.

7802035.jpg

Shares of Apple subsequently fell below $90 for the first time in nearly two years amid investors' concerns over the slump. Later it was revealed that Apple investor Carl Icahn had earlier decided to sell his stake in the company due to concern over China's attitude towards Apple, while a second Apple investor, David Tepper, had also dumped shares as its value continued to lessen.

However, just over two weeks ago, a regulatory filing by multinational conglomerate Berkshire Hathaway - which is run by Warren Buffett - revealed that as of March 31, the company owned 9,811,747 shares in Apple stock. Since then, shares of Apple have risen by 9 percent and breached the $100 mark, its highest point in a month.

Buffett has something of a reputation for being able to effect stocks, according to Fortune, which points to a dramatic 11 percent upturn of Kinder Morgan shares in February, shortly after Berkshire Hathaway disclosed its stake in the company.

However, Apple has also enjoyed a reversal of fortune in recently reported production targets for its next-generation iPhone 7, which is expected to launch this September.

Contradicting previous claims of projected weak demand for the upcoming device, Apple has reportedly asked its Asian suppliers to prepare for the highest iPhone production target in "about two years".

Apple investors also appeared unperturbed by news this week that the company's retail expansion in India may fall through, following a ruling from the Indian government that Apple must sell locally sourced goods if it wants to open stores in the country.

Apple remains eager to expand its business in India, where last quarter the company saw its revenue grow 56 percent, surpassing $1 billion. CEO Tim Cook's recent weeklong visit to the country garnered significant media attention and Apple will have regarded it as a positive step towards its global expansion goals.

Article Link: Apple Shares Soar 9% on News of Warren Buffett Stake in Company
Click to expand...


This article is not correct. Buffett didn't have anything to do with the purchase (it was either Todd Combs or Ted Weschler). This is sloppy reporting. Apple is up due to more buyers than sellers, simple as that.
 
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