Is Warren Buffett adding to Apple under $175?

“The market is punishing Apple for removing sales guidance on iPhones. Apple has shed over 22% or $49 a share from the $220 level after reporting earnings on November 1st,” Giovanni DiMauro writes for Seeking Alpha. “Apple has fallen into bear market territory; the game has changed. Wall Street is trashing market leaders as deep pockets continue taking profits after a multiyear rally for the ages.”

“Apple has been a darling of Wall Street and with good reason. The company has a fantastic business model. They also have the number one investor in the world as a major shareholder, Warren Buffett,” DiMauro writes. “At what price does Apple become a strong buy? That my investor friends, is the billion-dollar question. Is this sell-off different from others? It feels like it, but to be frank, I do not know. When in doubt, I go to the charts.”

“Granted the stock is in a sell-off, but what an epic run! Apple stock may be one of the greatest wealth creation vehicles in human history. I wish I would have been smart enough to buy Apple in 2005 when it was trading for $5.50 a share,” DiMauro writes. “Granted the stock is in a sell-off, but what an epic run! Apple stock may be one of the greatest wealth creation vehicles in human history. I wish I would have been smart enough to buy Apple in 2005 when it was trading for $5.50 a share… Apple management will be buying back stock over the coming weeks and months thereby supporting the share price. In my opinion, the share price will find strong support around the $150 level.”

Warren Buffett’s Berkshire Hathaway increased its stake in Apple to 252 million shares as of June 30. The investment is worth more than $50B, making Berkshire the third-biggest shareholder in Apple according to data compiled by Bloomberg,” DiMauro writes. “Is he buying this current plunge? Investors will have to wait and see.”

Read more in the full article here.

MacDailyNews Take: This overreaction, computer-aided or otherwise, is the greatest Christmas gift we’ve seen in a long time!

When the lemmings, er… “analysts” start their upgrade parade, then you’ll know the bottom has been found.

SEE ALSO:
Explaining the recent Apple selloff, and why the stock looks undervalued – November 23, 2018
Apple is no longer worth anywhere near one trillion dollars – November 23, 2018
Apple to lower iPhone XR pricing in Japan in order to boost sales – November 23, 2018
Why the bad news on Apple keeps on coming – November 23, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018

15 Comments

    1. Today, Apple went up 1.35% while Amazon went up 5.28%. “Houston, we have a problem.” Yeah, I know. Apple has only lost about $240B of value in just a couple of weeks. No biggie. For a company that makes rather decent revenue and profits, it really doesn’t instill much confidence to Wall Street and is always said to be doing the wrong things. The final insult will be Microsoft passing Apple in market cap value without breaking a sweat. Why, because Microsoft has THE CLOUD behind it. Yes, an unlimited cloud business that Apple completely ignored. Everyone believes Apple’s iPhone business is dying and that’s all there is to it. I’ve no reason to complain but it’s sort of humiliating that after all these years I can’t tell a good stock from a poor one.

    1. I think we need more than just good luck considering how this market is being run. What appears to me as really bad news for General Motors actually lifted the stock. Things like this make no sense to me.

      1. Today was not bad news for GM, it was bad news for GM employees. There is a difference. The stock market only cares that GM says thy will save $6 billion next year, which drops to the bottom line. Wall street is perfectly fine with people losing jobs if shareholders benefit.

  1. Buffett lost BILLIONS of dollars on this drop. He may have been part of the wave of liquidation. We’ll know soon when he releases his next filing.

    The market is destroying Apple, not “lemmings”. Apple does not get to determine their value, the market does. The market b!tchslaps Apple and Pipeline has to sit there and take it.

    1. The stock is not tanking because of anything to to with Tim Cook, Apple’s innovation, no new Mac Pros or any of the things the anti Mac idiots around here can’t stop whining about. The market is tanking thanks to Trump’s threatened damage to the current world trading system. And Apple is damaged more than any other company because they build in, and sell huge quantities to, China. Trump is declaring war on China not with guns but with trade, and Apple is caught in the crossfire. AAPL has risen with any encouraging signs to China trade, but has plummeted with all the dismal pronouncements of late.

  2. “Darling of wallstreet “..BS!
    You must be kidding me..
    In the last decade or so , wall street has always undervalued Apple.
    Look at the PE history of Apple relative to other tec companies..

    1. Apple, the Darling of Wall Street? I’ve seen curbside hookers being treated better than Apple. Let’s just say I’m quite annoyed how quickly Apple lost value. All I can take comfort in is buybacks and dividends.

    2. It is the “Darling of Wall street” because it is and has been so easy for shorts to manipulate the stock based on , according to Apple, inaccurate reports from suppliers. Now that Apple won’t report iPhone units the Shorts now have to rely on these supplier reports to lower the stock value which is funny as Apple has continuously reported string sales and revenue that contradict these “reports”.

      It will be interesting to see what happens on Apple’s next earnings report.

  3. I doubt that Wall Street is hurting Apple. Customers buy product based on what they want not what a stock price is.
    They are not hurting Apple but instead they are helping them. Apple is still in the stock buyback plan and this means they are able to buy back more stock than at a higher price. If anything Wall Street is hurting themselves as most of them own stock in Apple.

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