The past few weeks have not been good for $ AAPL.
Shortly after Apple released its latest financial results, its shares had already dropped significantly to the point that the company fell below the $ 1 track line in market value. And this negative performance continued from 1 to c, reaching a recent low of US $ 186.80 just yesterday (11/14).
Today, the shares recovered slightly, rising 2.47% and closing the day quoted at $ 191.41. Apple's market value is now at $ 908.3 billion, still maintaining its position as the most valuable publicly traded company in the world. Next came Microsoft with $ 823.5 billion, Amazon (which also topped the $ 1 rail a few weeks ago) with $ 791.9 billion and Alphabet / Google with $ 743.7 billion.
Since the last historical record for the $ AAPL recorded on October 3 (when it closed at $ 232.07 a day), the cumulative drop has been almost 18%.
In addition to the reasons cited in our previous article, the past few weeks have been permeated with rumors and speculation about the performance of the iPhones XS, XS Max and XR. Unfortunately, it seems that Wall Street analysts have a short memory as it is not even a year since we heard the same pessimism about the iPhone X, which later proved to be the best-selling smartphone model by Apple for several months in a row.
Could it be that Apple got it wrong this year, that the new iPhones haven't thrilled the market so much, or even that they're selling well below the most optimistic expectations? It may be, of course. But, until we see a significant drop in the company's revenue at some official financial results conference, everything is just a buzz / speculation. Even if it no longer publishes sales data by units, any poor performance in sales of iPhones would strongly impact its sales.
Incidentally, this is another point that analysts take little account of. Yes, the iPhone still accounts for more than half of Apple's total revenue, but it's not the only product for it. And today, $ AAPL s seems to go up or down according to numbers referring to the iPhone. Apple's ?Services? segment alone generated $ 10 billion in revenue in the last quarter, a staggering figure that continues to grow markedly. Morgan Stanley is one of the few that sees this very clearly.
Warren Buffett continues to buy
Who keeps betting heavily on Apple to Berkshire Hathaway, by tycoon Warren Buffett.
During the third quarter of 2018, it acquired another 522,802 shares of Ma totaling no less than 252,478,779 shares, which now represent 26% of its entire investment portfolio.
These papers are worth, based on today's closing price of $ AAPL, more than $ 48 billion. That is, Berkshire holds about 5% of Apple's shares available on the market.
And Berkshire is one of several that continue to bet heavily on Ma's potential. Even more now, of course, at this low point.