Core Viewpoint - Warren Buffett is reducing his investment in Apple, which has been Berkshire Hathaway's largest holding for a decade, due to concerns over Apple's valuation and slower revenue growth compared to competitors [1][2]. Financial Performance - Apple's revenue grew just under 7% year-over-year to $416 billion, with iPhone revenue at $210 billion and software services revenue at $109 billion [4]. - Over the last three years, Apple's revenue growth was only 7.4%, significantly lagging behind Alphabet's 37% and Microsoft's 44% growth [5]. Product Innovation - Despite some successful products like the Apple Watch and AirPods, these segments contributed only $37 billion to Apple's overall revenue, under 10% [6]. - Apple has not introduced new hardware to the mass market and has failed to invest in AI, which could jeopardize its iPhone and software services revenue streams [7][8]. Competitive Landscape - Start-ups like OpenAI are developing AI-native hardware, while competitors like Alphabet are integrating advanced AI into their products, posing a risk to Apple's market position [8]. - Apple is reportedly paying Alphabet $1 billion annually for AI services, raising concerns about the lack of innovation in its software offerings [9]. Valuation Concerns - Apple's current price-to-earnings (P/E) ratio is 37, higher than Alphabet's 27, despite Alphabet and Microsoft showing faster earnings growth [11]. - Berkshire Hathaway's decision to sell Apple shares while purchasing Alphabet indicates a shift towards companies with better growth prospects and lower valuations [12].

The quantum stock continues to climb after its latest earnings. Will it continue?Shares of Quantum Computing Inc (QUBT +7.30%) jumped on Tuesday, finishing the day up 7.3%. The move came as the S&P 500 and the Nasdaq Composite gained 0.9% and 1.3%, respectively. The quantum computing company's stock is continuing to gain following its better-than-expected earnings print on Friday. Employment data released today also helped to lift shares.NASDAQ : QUBTQuantum ComputingToday's Change( 7.30 %) $ 0.84Current Pr ...

A new asset about to be integrated into the company could give its fundamentals a serious boost.Drone, robot, and telecom equipment specialist Ondas (ONDS +25.34%) was quite the standout on the stock market on the second trading day of the week. Its share price blasted skyward by more than 25% thanks to news of a fresh acquisition. Flying high with the new assetBefore market open, Ondas announced, no doubt with great satisfaction, that it wrapped up its purchase of Israeli counter-unmanned aerial systems (C ...

Core Insights - Amazon's stock experienced a decline of over 4% due to regulatory developments in the EU and an analyst downgrade [1][3] - The EU has classified Amazon and 18 other tech companies as "critical" technology partners, placing them under stricter regulatory supervision [2][3] Regulatory Developments - The European Union's designation of Amazon as a "critical" technology partner indicates increased scrutiny from regulators, which may impact operational flexibility [2][3] - EU regulators are known for being more aggressive in limiting the power of tech giants compared to their U.S. counterparts [3] Analyst Insights - Rothschild Redburn's analyst Alex Haissl downgraded Amazon's stock from "buy" to "neutral," setting a new price target of $250 per share [3] - Haissl expressed concerns regarding the capital intensity and pricing power associated with generative AI, which he believes could affect tech companies' margins [4] Financial Metrics - As of the latest trading day, Amazon's stock price is $222.58, with a market capitalization of $2,489 billion [6] - The stock's 52-week range is between $161.38 and $258.60, indicating significant volatility [6] Market Position - Despite the regulatory challenges and analyst downgrade, Amazon's strong foundation in technology and resources may mitigate potential negative impacts on its stock [6][7] - The company's success in the cloud business, Amazon Web Services, supports its position as a potential buy candidate [7]

Buffett will leave his successor a great new addition to Berkshire's portfolio.Berkshire Hathaway (BRK.A 1.11%) (BRK.B 1.12%) recently filed its last quarterly regulatory disclosure of holdings before Warren Buffett passes the baton as CEO to Greg Abel. Sure, the huge conglomerate could buy and sell some stocks in the fourth quarter of 2025, but the regulatory filing for those trades won't come until early next year – after Buffett has stepped down.Although Buffett was yet again a net seller of stocks in th ...

Core Insights - Nike's shares have significantly outperformed Apple's since their IPOs, with an initial investment of $1,000 in Nike's 1980 IPO now yielding $4,800 annually in dividends [1] - Nike experienced explosive growth prior to its IPO, with annual revenue increasing at an average rate of 85% and net income growing by 100% each year [2] - In contrast, Apple faced intense competition and market challenges in its early years, leading to a significant drop in its market share by the late 1990s [4][5] Company Performance - Nike maintained low capital investments and minimized risks through an innovative inventory system, allowing it to thrive without the struggles faced by Apple [6] - Nike's marketing strategy included endorsements from high-profile athletes, contributing to its brand strength and financial success [7] - As of November 14, Nike's stock has returned 35,550% since its IPO, turning an initial $1,000 investment into $356,500 [10] Dividend and Share Repurchase - Nike has consistently raised its dividends since 2001, while Apple did not pay dividends until 2012, despite both companies' significant capital appreciation [9][11] - In the previous year, Apple paid out $15.2 billion in dividends compared to Nike's $2.17 billion, highlighting the disparity in their dividend policies [12]

Palantir has been a major beneficiary of artificial intelligence (AI) spending, but the stock's rally could start to wane.Despite some volatility earlier in the year, 2025 has shaped up to be another impressive year for artificial intelligence (AI) stocks. Per usual, data analytics platform Palantir Technologies (PLTR 1.63%) has remained one of the best AI stocks -- with shares surging 130%.One sector that has been relatively weak this year, however, is health insurance. Among notable laggards is UnitedHeal ...

Berkshire Hathaway is spreading its wings into new Magnificent Seven stocks.Warren Buffett and Berkshire Hathaway (BRK.B 1.12%)(BRK.A 1.11%) continue to sell Apple stock, increasing the company's cash position to close to $400 billion. One stock Berkshire is buying is Alphabet (GOOG +3.11%)(GOOGL +3.13%). The technology giant and leading artificial intelligence (AI) stock has been a favorite of Buffett and the team for years, although they have never bought the stock. That is, until last quarter, when Berks ...

AI has fueled the stock market over the past few years.The blistering artificial intelligence (AI) trade that has fueled the bull market for years recently showed signs of fatigue, as investors began to question high valuations and other factors affecting the broader sector. Few companies are more impactful on AI than Microsoft (MSFT 0.53%), which appears to be forging deals and alliances with nearly every major company in the space, from Nvidia to CoreWeave.Recently, Microsoft CEO Satya Nadella delivered s ...

"Investing" in Oklo stock is an exercise in speculation.No two ways about it, Oklo (OKLO 2.27%) investors have had a very bad month.A developer of small modular nuclear reactors that can power artificial intelligence (AI) data centers, Oklo has benefited mightily from investor enthusiasm over AI stocks, anticipating there will be great demand for Oklo's brand of nuclear power to keep the AI revolution humming.Oklo stock hit an all-time-high price of $166 in mid-October, up ninefold in 12 months' time. The p ...