Warren Buffett (Twitter / Warren Buffett, pixabay)
Warren Buffett could be kicked out this weekend, following a jump in Apple stock. The value of Berkshire Hathaway’s holdings in Apple grew by an imaginary amount of about $ 9.8 billion on Friday, with Apple shares rising nearly 7% after releasing a particularly strong earnings report.
Apple reported December quarterly earnings on Thursday, recording nearly $ 124 billion in sales and strong sales growth in every product line except the iPad. Investors were particularly enthusiastic about CEO Tim Cook’s comments that the supply chain headaches are improving.
Berkshire Hathaway began accruing shares of Apple in 2016 and now owns 887,136,000 shares of the iPhone maker, more than 5% of Apple shares, according to a CNBC report.
Buffett has been one of Apple’s biggest supporters since 2016, though he initially saw high-tech investments too risky for Berkshire Hathaway before he began buying Apple shares. Apple now accounts for more than 40 percent of Berkshire Hathaway’s investment portfolio.
Apple issues fixed dividends, a fact that appeals to Buffett especially in choosing to invest in the company’s shares. As you may recall, Apple unveiled its ambitions between Thursday and Friday when CEO Tim Cook discussed expanding the company’s augmented reality apps, which caused a strong investor reaction and a jump in the technology giant’s share by about 8% after trading.
The company has 14,000 AR apps in its App Store, and Cook suggested that number go up with an additional investment. “We see a lot of potential in this space and invest accordingly,” Cook said, in response to a question about its plans for Mowers, a broad term that typically refers to shared virtual world environments that people can access via the Internet.
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Apple analysts Ming-Chi Kuo and Bloomberg have reported that Apple plans to introduce AR headphones by this year or next year with glasses to come later. Apple has not yet publicly acknowledged these plans. Cook’s comments on Thursday, and quarterly earnings estimates and sales, helped raise Apple inventory by nearly 5% in after-hours trading.
According to the published report, revenue from Apple’s services jumped 24% to $ 19.5 billion in the just-ended holiday quarter, surpassing analysts’ estimates of $ 18.6 billion. The company added 785 million subscribers to its handful of paid services like streaming music and games, up 620 million years ago and 745 million last quarter.
And as services and subscriptions grew, Apple’s gross profit margin jumped above 40%, garnering praise from analysts. Mabers-related services like AR apps could flip Apple’s revenue mix, said Counterpoint Research analyst Neil Shah.
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