Greg Abel Takes Over as CEO of Berkshire Hathaway Amid Cash Reserves
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: NASDAQ.COM
- Cash Reserve Advantage: Berkshire Hathaway's cash and short-term Treasury bills total approximately $378 billion, representing 36% of the company's market capitalization, providing new CEO Greg Abel with flexible investment options, especially during market volatility.
- Strong Growth for Apple: Apple's fiscal first-quarter revenue reached $143.8 billion, a 16% year-over-year increase, with iPhone revenue growing by 23%, demonstrating robust performance in the smartphone market, and the company expects to maintain 13% to 16% growth in fiscal Q2.
- Profitability Comparison: Apple's earnings per share rose 19% year-over-year, surpassing social media company Meta, despite Meta's faster revenue growth, indicating Apple's advantage in financial discipline, which may support future earnings growth.
- Balanced Investment Portfolio: With Abel's takeover, the combination of Berkshire and Apple offers investors a balanced investment strategy, as both companies face their own risks, yet their strong market positions and cash flows remain attractive in uncertain market conditions.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
Current: 275.910
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Sell-Off Signal: Warren Buffett's Berkshire Hathaway has sold Apple shares in six quarters between Q4 2023 and Q3 2025, reducing its holdings from over 900 million to 238 million, reflecting ongoing valuation concerns.
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- Record Device Base: CEO Tim Cook announced during the Q1 2026 earnings call that Apple has surpassed 2.5 billion active devices, a milestone that underscores the company's extensive consumer reach and solidifies its market position.
- Significant Services Revenue Growth: CFO Kevan Parekh reported that Apple's services revenue hit an all-time high of $30 billion, reflecting a 14% year-over-year increase, which not only enhances the company's revenue mix but also lays a strong foundation for future growth, especially in the competitive landscape of artificial intelligence.
- Buffett's Sell Signal: Despite Berkshire Hathaway's investment in Apple yielding a remarkable 1,040% gain since Q1 2016, Warren Buffett has sold shares in six of the last eight quarters, reducing holdings from over 900 million to 238 million, indicating concerns over current valuations.
- Caution for Investors: With Apple's price-to-earnings ratio at 34.1, analysts suggest that while the company remains competitive, Buffett's selling may signal a decline in the attractiveness of investment opportunities, prompting investors to carefully evaluate before purchasing.
See More
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- Product Launch Anticipation: OpenAI is set to launch its first AI earbuds this year, although its more complex smartphone-like device has been delayed due to surging memory chip prices, which may impact its competitive positioning in the market.
- Design Team Integration: The acquisition of Jony Ive's design startup last year aims to enhance the design quality of OpenAI's consumer hardware products, potentially leading to innovations in its future product lines.
- Patent Leak Insights: A recent patent filing in China reveals that OpenAI's consumer hardware product is internally dubbed “Sweetpea” and is expected to be marketed as “Dime,” with the public disclosure of this information suggesting an imminent product reveal.
- IPO Preparations: OpenAI is preparing for an initial public offering (IPO) this year, with a potential valuation of $1 trillion, while also working on a $100 billion private funding round, indicating strong appeal in the capital markets.
See More
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- Surge in Downloads: Amid the diplomatic crisis triggered by Trump's remarks on Greenland, the Danish app “Made O’Meter” saw approximately 30,000 downloads in just three days, indicating a strong consumer response to boycotting American products and highlighting the direct impact of political events on consumer behavior.
- User Preference Settings: The app allows users to set preferences such as “No USA-owned brands” or “Only EU-based brands,” utilizing artificial intelligence to identify and analyze multiple products simultaneously, thereby enhancing user experience and strengthening market competitiveness.
- Market Competition: Another Danish app, “NonUSA,” surpassed 100,000 downloads at the beginning of February, indicating a sustained consumer interest in boycotting American products, which may encourage the development of more similar applications and further diversify the market.
- Platform Availability: Both apps are available for download on Apple and Google’s app stores, underscoring the significant role of digital platforms in driving consumer behavior and market trends while providing developers with vast market opportunities.
See More
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- Siri Overhaul: Apple is set to launch its revamped AI-powered Siri assistant this month, which is expected to feature improved natural language understanding and cross-app controls, potentially enhancing user experience and driving product sales.
- Upcoming Product Releases: Apple plans to release new 14-inch and 16-inch MacBook Pros and an M5 processor-equipped MacBook Air in March, while the low-cost iPhone 17e is also expected to launch imminently, likely attracting more consumer interest.
- Sales Growth: Apple's December quarter report revealed a 23% increase in iPhone sales, propelling the stock to rise over 7% last week, outperforming Wall Street expectations and indicating strong market demand.
- Market Sentiment Shift: Despite the stock surge, retail investor sentiment quickly turned bearish after the earnings release, reflecting uncertainty about future trends, which could impact Apple's short-term stock performance.
See More
Apple's Earnings Highlights and Risks
- Record Device Base: Apple reported over 2.5 billion active devices in its Q1 2026 earnings call, highlighting the extensive consumer popularity of its products, which provides a favorable backdrop for service segment growth.
- Service Revenue Surge: The company's services revenue reached an all-time high of $30 billion, up 14% year-over-year, indicating that the blend of hardware and software creates a strong competitive advantage, especially in the age of artificial intelligence.
- Shareholder Sell-Off Signal: Warren Buffett's Berkshire Hathaway has sold Apple shares in six quarters between Q4 2023 and Q3 2025, reducing its holdings from over 900 million to 238 million, reflecting ongoing valuation concerns.
- Valuation Risks Emerge: With a current price-to-earnings ratio of 34.1, Apple is not considered a value stock, and Buffett's sell-off may suggest a shift in market perception regarding Apple's future opportunities, prompting investors to proceed with caution.
See More
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- Dow Index Milestone: The Dow Jones Industrial Average has surpassed 50,000 for the first time, marking a significant recovery in the U.S. stock market, reflecting increased investor confidence in economic recovery, which may lead to more capital inflows into equities.
- Buying Opportunities: Stocks like JPMorgan, Apple, and Boeing have entered buy zones, indicating that the performance of these large companies has attracted investor interest, potentially driving their stock prices higher and enhancing market vitality.
- Nasdaq Divergence: While the Nasdaq remains below key support levels, some AI-related stocks are reviving, indicating a potential rebound in tech stocks that may provide new investment opportunities for investors.
- Market Sentiment Improvement: The overall market sentiment is improving, as optimistic expectations for future economic growth may encourage more capital to flow into the stock market, thereby driving further increases in the overall market.
See More
