Warren Buffett is betting big on Apple

Apple shares are taking a dive.
Berkshire Hathaway's investment in Apple could send the price back up.
Photo: Ste Smith/Cult of Mac

Some of the world’s biggest investors have ditched their Apple shares lately, but where others see doom and gloom Warren Buffett sees an opportunity to make some serious money. 

Warren Buffet’s legendary investment firm Berkshire Hathaway has taken a large position in Apple stock, scooping up 9.81 million shares, worth about $1.07 billion.

Why Apple stock is far from dead

Apple shares are taking a dive.
Apple shares have been taking a beating!
Photo: Ste Smith/Cult of Mac

AAPL stock fell to a new 52-week low last week, signaling its longest loss streak in 18 years, but portfolio managers aren’t close to throwing in the towel on Apple just yet. In fact, this could turn out to be the equivalent of a Black Friday sale for anyone wanting to get their hands on some massively undervalued stock!

“Things aren’t as bad as everybody thinks,” said Dan Morgan, senior portfolio manager at Synovus Trust, speaking on CNBC‘s “Squawk on the Street.” “[Apple has] a tremendous amount of room to grow.”

Apple stock hit with biggest drop since 2013

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Apple shares are taking a dive.
Apple shares are taking a dive.
Photo: Ste Smith

Apple’s Q2 2016 earnings have been disasterous for the company’s share price, as AAPL stock suffered its worst week in three years.

Wall Street has suddenly soured on Apple, including Carl Icahn, who revealed earlier this week that he dumped all of his shares. With investors offloading shares, the company watched its market capitalization shrink by $65 billion in a mere three days, which is about the equivalent of Cambondia’s net wealth. 

Mega-investor Carl Icahn gives up on AAPL

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Apple shares are taking a dive.
Apple shares are taking a dive.
Photo: Ste Smith

Apple’s biggest cheerleader on Wall Street, Carl Icahn, is getting rid of all of his AAPL shares after the iPhone-maker reported its first year-over-year decline in revenues for the first time in 13 years.

The iconic investors has insisted for years that Apple shares are grossly undervalued and has made over $3.4 billion investing in Apple. Now Carl is throwing in the towel even though he still thinks the stock is ridiculously cheap.