Apple Stock Tumbles 7.5% In Premarket, On Track To Open At Nearly 2-Month Low: Why Is Tech Giant Losing Flavor?

Shares of tech giant Apple, Inc. AAPL, which weathered the mega-cap sell-off on Friday, are sliding in premarket trading on Monday.

The stock fell 7.75% to $202.81 in premarket, according to Benzinga Pro data, and if the premarket losses hold good, it is on track to open at its lowest since June 11 when it traded at an intraday low of $193.63. The previous worst close was from June 10 ($193.12).

See Also: Everything You Need to Know About Apple Stock

Apple is buffeted by billionaire investor Warren Buffett-led Berkshire Hathaway, Inc.’s BRK BRK decision to cut its stake in the tech giant by nearly 50% in terms of the number of shares.

The 10-Q report for the second quarter filed by Berkshire showed the firm held $84.2 billion Apple shares at the end of the second quarter, down from the $135.4 worth of shares at the end of the second quarter. Berkshire had trimmed its Apple shares by 13% in the first quarter, with Buffett stating at that time the sale was to raise cash to foot the federal tax bill and to preserve as a store of value amid an inclement economy.

Commenting on the second-quarter disposal, Wedbush’s Daniel Ives said Apple continues to be Berkshire’s top holding, more than double of its next biggest holding Bank of America Corp. BAC.

“While the bears will clearly run with this news and narrative coming off a brutal Friday sell-off in tech stocks, we strongly caution that Buffett is a core believer in Apple and we do not view this as a smoke signal for bad news ahead,” he said.

Apple’s premarket slide may also have to do with an across-the-board sell-off in the global financial markets amid recession scare and the unwinding of the yen carry trades.

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