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.

WARREN BUFFETT
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.

Top Rated Comments

djcerla Avatar
102 months ago
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.
Score: 10 Votes (Like | Disagree)
koolmagicguy Avatar
102 months ago
All Buffet has to do is buy some stock, tell people he has bought it, and when it skyrockets sell it off again. Rinse repeat. Genius.
Score: 9 Votes (Like | Disagree)
American Hero Avatar
102 months ago
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.
Score: 3 Votes (Like | Disagree)
KazKam Avatar
102 months ago

Apple Shares Soar 9% on News of Warren Buffett Stake in Company
Dear MacRumors, your logical fallacy is "false cause". https://yourlogicalfallacyis.com/false-cause

Not saying this didn't have some level of impact, but to call it THE reason is irrational.
Score: 3 Votes (Like | Disagree)
rti92391 Avatar
102 months ago
('https://www.macrumors.com/2016/05/27/apple-shares-soar-news-warren-buffett-stake/')


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 ('http://fortune.com/2016/05/26/shares-of-apple-have-soared-9-since-warren-buffett-revealed-his-stake/')).

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 ('https://www.macrumors.com/2016/04/26/q2-2016-earnings/') and its first year-over-year revenue drop in 13 years.



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 ('https://www.macrumors.com/2016/04/28/carl-icahn-dumps-apple-shares/') due to concern over China's attitude towards Apple, while a second Apple investor, David Tepper, had also dumped shares ('https://www.macrumors.com/2016/05/14/investor-dumps-apple-stock-drops-two-year-low/') 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 ('https://www.macrumors.com/2016/05/16/berkshire-hathaway-stake-in-apple/'). 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" ('https://www.macrumors.com/2016/05/23/apple-suppliers-iphone-7-target-higher/').

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 ('https://www.macrumors.com/2016/05/25/apple-retail-stores-in-india-waiver-denied/') 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 ('https://www.macrumors.com/2016/05/27/apple-shares-soar-news-warren-buffett-stake/')
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.
Score: 2 Votes (Like | Disagree)
gnasher729 Avatar
102 months ago
It will reach $130 again within 28 days.
But someone posted it would reach $50 within a year?
Score: 2 Votes (Like | Disagree)

Popular Stories

iPhone 16 Camera Lozenge 2 Perspective Gray

Five Key Upgrades Coming to iPhone 16

Friday March 15, 2024 1:45 pm PDT by
The iPhone is Apple's top-selling product, and it gets an update every year. In 2024, we're expecting the iPhone 16 and iPhone 16 Pro lineup, with an arguably more interesting feature set than we got with the iPhone 15 and iPhone 15 Pro. Subscribe to the MacRumors YouTube channel for more videos. Capture Button All four iPhone 16 models are set to get a whole new button, which will be...
When To Expect New iPads Feature 1

Apple to Announce New iPads on March 26, Rumors Claim

Monday March 18, 2024 4:02 am PDT by
Apple is widely expected to release new iPad Air and OLED iPad Pro models in the next few weeks. According to new rumors coming out of Asia, the company will announce its new iPads on Tuesday, March 26. Chinese leaker Instant Digital on Weibo this morning 日发布%23">claimed that the date will see some sort of announcement from Apple related to new iPads, but stopped short of calling it an...
airpods 3 orange

Two New AirPods 4 Models Expected to Launch in September or October

Sunday March 17, 2024 7:56 am PDT by
Apple suppliers will begin production of two new fourth-generation AirPods models in May, according to Bloomberg's Mark Gurman. Based on this production timeframe, he expects the headphones to be released in September or October. Gurman expects both fourth-generation AirPods models to feature a new design with better fit, improved sound quality, and an updated charging case with a USB-C...
iphone se 4 modified flag edges

iPhone SE 4 Expected to Depreciate Heavily

Tuesday March 12, 2024 9:04 am PDT by
Resale value trends suggest the iPhone SE 4 may not hold its value as well as Apple's flagship models, according to SellCell. According to the report, Apple's iPhone SE models have historically depreciated much more rapidly than the company's more premium offerings. The third-generation iPhone SE, which launched in March 2022, experienced a significant drop in resale value, losing 42.6%...
iOS 17 Passkey With Apple ACCOUNT Feature

'Apple ID' Expected to Change to 'Apple Account' Starting With iOS 18

Sunday March 17, 2024 7:13 am PDT by
MacRumors was first to report that Apple was planning to rebrand "Apple ID" to "Apple Account" across its software platforms and websites like iCloud.com as early as this year, and now Bloomberg's Mark Gurman has corroborated this change. A mockup of the new Apple Account branding In his Power On newsletter today, Gurman said the new "Apple Account" branding will start to be used later this...
General iOS 17 Feature Orange Purple

iOS 17.4.1 Update for iPhone is Imminent

Monday March 18, 2024 5:27 am PDT by
iOS 17.4.1 and iPadOS 17.4.1 should be released within the next few days, with a build number of 21E235, according to a source with a proven track record. MacRumors previously reported that Apple was internally testing iOS 17.4.1. As a minor update for the iPhone, it will likely address software bugs and/or security vulnerabilities. It is unclear if the update will include any other changes. ...