Berkshire Hathaway Drastically Slashed Its Apple Stake By Over Half Despite An 800% Growth Spree Amidst Apple's Resilient 10% Stock Recovery

• Berkshire Hathaway significantly decreased its Apple holdings by 55.8%.
• Apple's recent slowdown in revenue growth and a 10% decline in smartphone demand, have influenced Berkshire's decision.
• Despite market and legal hurdles, Apple is pursuing innovations in artificial intelligence, aiming to strengthen its market position and create new revenue streams.

Berkshire Hathaway Inc Class B (NYSE: BRK-B) significantly reduced its investment in Apple Inc AAPL by selling 505 million shares, which is a 55.8% decrease in its holdings.

This shift marks a notable change in the company's investment strategy, especially since it has seen nearly 800% growth in its Apple investment since 2016.

This large sale indicates that Berkshire is rethinking how it allocates its assets, particularly given the strong gains Apple stock has provided over the years.

The decision to cut back on Apple shares likely comes from various market factors impacting the tech company. Apple has recently faced a slowdown in revenue growth, along with a more than 10% drop in smartphone demand in the first quarter.

This decline is partly due to shrinking markets in important regions like China. Additionally, Apple is dealing with significant legal challenges, including an antitrust lawsuit from the U.S. Department of Justice, which adds uncertainty to its future performance.

Despite these challenges, Apple continues to innovate, exploring new opportunities in artificial intelligence and satellite connectivity that could help improve its market position and attract investors.

These efforts not only have the potential to boost sales but also to create new revenue streams, consistent with Apple's history of leading in breakthrough technologies.

Apple's stock has seen some ups and downs lately. After hitting a high of $237 on July 15, it dropped sharply to a key support level at $200, which is both a psychological barrier and the peak for 2023.

The drop happened right after their third-quarter earnings were released on August 1st. Even though they reported good results, the stock fell 10% to support over the next two days.

Recently, though, the stock has started to recover, rising 10% since the rebound and showing a 12% increase year-to-date. Apple’s stock often experiences long trends mixed with sideways movements, highlighting the importance of patience for investors.

After the closing bell on Friday, August 9, the stock closed at $216.24, trading up by 1.37%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.