Apple

Today, Apple (AAPL) turned negative again after a steep recovery yesterday. On December 26, the stock rose 7.0%, while today at 2:30 PM ET, it was trading with 4.0% losses at $150.83. At the same time today, the S&P 500 benchmark and NASDAQ Composite Index (QQQ)(VTI) were down 2.5% and 2.9%, respectively, after solid recovery in the previous sessions. While today’s broader market sell-off is taking a toll on Apple investors’ sentiment, there’s another factor that could be affecting its stock movement. Let’s take a look.

Apple: More Worries for Warren Buffett as Analyst Targets $177.75

Analyst targets $117.75

According to a CNBC report, the managing director of London-based equity research firm Pelham Smithers Associates, Pelham Smithers, sees more significant downside in Apple stock. In a note to CNBC, Smithers said, “We’ve seen [Apple] on valuations even lower than where they are today. And with the Qualcomm lawsuit, smartphone exhaustion and trade worries, we could easily test those historic lows, which would mean up to 25 percent downside from here.” The report suggests that Smithers predicted a drop in Apple stock “to 117.75 — a price it hasn’t seen since early 2017.”

More worries for Warren Buffett

Apple was the largest single holding of Warren Buffett’s Berkshire Hathaway (BRK.B) at the end of the third quarter. In the third quarter, Buffett’s company bought about 522,902 more Apple shares. Berkshire owned about 252.5 million Apple shares at the end of the third quarter. Its stake in Apple rose to $56.99 billion last quarter, up 22.2% from $46.64 million in the second quarter.

A consistent drop in Apple stock could cost Buffett a fortune unless he has already sold some of his stake in the fourth quarter. We won’t know until Berkshire’s next SEC filing in the first quarter of 2019.

In the fourth quarter so far, AAPL had tanked 30.4% as of December 26. Meanwhile, Microsoft (MSFT), Intel (INTC), Amazon (AMZN), Google (GOOG), and Oracle (ORCL) have lost 12.1%, 2.3%, 26.6%, 13.2%, 13.5%, respectively, quarter-to-date.

Latest articles

Marathon Petroleum (MPC) stock has been tumbling in Q3, driven by geopolitical tensions, oil price uncertainty, and weaker refining conditions.

This week, AT&T CEO Randall Stephenson noted that AT&T (T) is on track to reduce its leverage multiple to about 2.5x by the end of this year.

Jeff Bezos announced that Amazon had placed an order of 100,000 electric delivery vans from Michigan-based startup Rivian.

Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.

Energy Transfer (ET) stock has recovered in the last two trading sessions after investors hammered it on its plans to acquire SemGroup (SEMG).

Software-as-a-service company Datadog (DDOG) made a smashing debut on Wall Street yesterday. After its IPO, DDOG's shares surged 40% in intraday trading.