Apple shares plunge after Berkshire cuts stake

Investing.comAug 5, 2024 12:33 PM

Investing.com -- Apple Inc. (NASDAQ:AAPL) shares dropped 8.3% to $201.71 at ET 6:12 am (1012 GMT) in pre-market trading on Monday after Warren Buffett's Berkshire Hathaway (NYSE:BRKa) cut its stake in the tech giant and amid a broader market selloff.

Berkshire Hathaway unloaded nearly half of its Apple holdings as part of a broader $75.5 billion selloff of stocks in the second quarter. The conglomerate also trimmed its investment in Bank of America (NYSE:BAC), opting to boost its cash reserves to $276.94 billion.

Despite the massive reduction, Wedbush analysts emphasized that Buffett remains bullish on Apple, citing the company's strong performance and promising outlook.

Apple still remains Berkshire's largest holding, valued at $84.2 billion as of June 30.

The market is unsettled because of a weak jobs report and worries about a possible economic slowdown. Major banks are calling for interest rate cuts to mitigate the economic impact.

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