The Warren Buffett Effect On Apple Inc. (NASDAQ:AAPL)’s Shares

There has been a 9% increase in Apple Inc. (NASDAQ:AAPL)’s shares since Warren Buffett announced that his company has $1.2 billion worth of shares on May 16. Apple shares fell for the first time since 2003 in the period between late last month and 12th this month mainly due to a decline in sales volumes. However, on May 16, the market responded positively to news on Warren Buffett’s stake.

The rise to the$100 mark

The shares grew by 9% after Warren Buffet’s disclosure, reaching its highest mark in the month, $100. This is not the first time Warren Buffet is affecting the movements of shares. Kinder Morgan Inc (NYSE:KMI) recorded a massive 11% increase when he disclosed his stake. IBM shares have however not been affected in the same way. They actually fell by 0.96% on the day of disclosure. This did not; however worry Buffett, as his focus is long term investment return.

Apple increases its production targets as more shares are ordered

Apple has increased its production targets and this will be good news for its iPhone 7 sales. According to Barrons, the company has instructed producers to manufacture 72-78million iPhone 7s which is way above the 65 million iPhone 7s that had been expected by analysts. Meanwhile, a trader on the Midwest Stock Exchange ordered 7.5 million Apple shares at $99.16 and an additional 5 million shares were ordered on the same day for the same price, according to CNBC’s Jon Najarian.

Apple’s market in China and India

Though Apple builds most of its tech products in China, has not been doing well in there recently and it hopes to use the potential in the Indian market to counter this sluggish growth. However, for this to be possible, the company will have to focus on more local manufacture of its products in India, at least 30%.

This Little Known Stocks Could Turn Every $10,000 into $42,749!

Learn how you could trade stocks with 91% to 100% success rate by using this revolutionary indicator that predicts when certain stocks are on the move.
You could be making up to 199% on a single trade in only 14 days.

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *

You may also like these