Apple Shares Under Pressure as Buffett’s Berkshire Reduces Stake

Warren Buffett’s Berkshire Hathaway has significantly reduced its position in Apple Inc., selling off more than two-thirds of its once-massive stake in a move that has captured the market’s attention. The selling activity, which began in the third quarter of 2023 and has continued since, represents a notable shift for the legendary investor who had long been one of Apple’s most prominent supporters among institutional investors.

This substantial divestment raises important questions about the technology giant’s long-term valuation prospects. Market observers are questioning whether Buffett’s team identifies emerging risks that others have overlooked, or if the move simply represents profit-taking at current valuation levels.

Wall Street Maintains Cautious Stance Amid Divestment

As Berkshire unwinds its position, Wall Street analysts present a mixed but generally cautious outlook. UBS maintains a neutral rating on Apple shares with a $220 price target, suggesting expectations of a potential consolidation phase. The Swiss institution appears to be balancing the company’s short-term growth prospects against its current market valuation.

Should investors sell immediately? Or is it worth buying Apple?

This cautious approach isn’t universal across the analyst community. Both Goldman Sachs and Bank of America Securities have recently reaffirmed their buy recommendations for Apple stock. These firms apparently maintain confidence in Apple’s ability to demonstrate its innovative capabilities in the coming periods.

September Event Could Mark Strategic Turning Point

Attention now turns to September 9th, when Apple is scheduled to host what industry insiders are calling an “awe-dropping” event. The anticipated unveiling of the iPhone 17 series is expected to feature significant artificial intelligence capabilities that could potentially shift consumer sentiment.

Concurrently, Apple continues its global expansion strategy with the opening of Apple Hebbal in Bengaluru, marking the company’s third retail location in India and its first in the country’s southern region. This ongoing investment in growth markets presents a critical question for investors: will new product innovations and retail expansion be sufficient to reassure skeptical institutional investors following Berkshire’s notable position reduction?