Reported 6 months ago
Apple's performance has lagged behind S&P 500 recently, attributed to its struggles in growing revenue with a mature iPhone market and lack of focus on AI technology. Warren Buffett's Berkshire Hathaway selling over 116 million shares of Apple, reducing holdings by 13%, raised speculation on the reasons behind the move. Buffett mentioned possible capital gains tax rate changes as a reason, but Apple's declining revenue and challenges in China may have also influenced the decision, indicating a potential narrowing economic moat and a need for new growth drivers. With a high valuation based on traditional metrics and competition from peers in AI, Apple's stock could be at risk of a pullback. The article advises shareholders, including Buffett, to consider selling Apple stock due to its current struggles and pricey valuation.
Source: YAHOO