Warren Buffett's Berkshire Slashes HP Stake: A Strategic Retreat or a Sign of Shifting Tech Trends?

Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), led by billionaire investor Warren Buffett, has significantly reduced its stake in HP Inc HPQ, cutting its holdings by nearly half. 

As of November 30, Berkshire owned 51.5 million shares or 5.2% of HP, based in Palo Alto, California, marking a decrease from the approximately 97.85 million shares held on October 3, Bloomberg reports.

This share reduction indicates that Berkshire may sell its stake in HP for the second consecutive quarter. 

HP's shares have not performed as well as those of its rival, Dell Technologies Inc DELL, as the demand for personal computers has declined in the post-pandemic period. 

HP and Dell experienced shrinking sales in the latest quarter, falling short of analyst expectations.

Also Read: HP Boasts About The Success Of Its Strategy To Lock In Print Customers

Despite the overall market trend, Dell's stock has seen a significant rise of 72% this year, surpassing the Nasdaq 100 Index's 48% increase and HP's 13% gain. 

Berkshire's remaining stake in HP is estimated to be around $1.56 billion, based on HP's stock closing price on Monday.

In November, HP reported a Q4 net revenue decline of 6.5% Y/Y to $13.817 billion, beating the consensus of $13.807 billion.

Adjusted EPS of $0.90 was in line with the consensus.

HP stock has gained 13.5% year-to-date.

Price Action: HPQ shares are trading lower by 0.36% at $30.26 premarket on the last check Tuesday.