As we head into the first week of March, the tech industry seems to be flat, as their have been some big winners and loses over the previous days. The Apple share price has risen as Warren Buffet has bet big on the tech powerhouse. Tesla shares have plummeted nearly $35 over the last five days, a loss of 12.2%, due to complications with production of the automaker’s Model 3. Uber is taking hit after hit, from claims of sexual harassment, accused patent theft, and increasing pressure due to the company’s apparent closeness with Trump administration. The Mobile World Congress was also held last week, and plans for new phones by Samsung, Blackberry, and Huawei have been released.
Warren Buffet Now Owns 133 Million Apple Stock
Curiously, the Berkshire Hathaway leader has been buying up huge amounts of Apple stock over the first few months of 2017, more than doubling his position in the company’s ownership. At first glance, the mass investment seems odd as the tech giant’s shares are at record highs, up 18% and counting so far in 2017. What is even more interesting is that Buffet is known to stay away from tech stocks, as he strongly believes to focus on company’s where he has experience and knowledge of their operations. It is likely that Buffet is predicting great success when the iPhone 8 is released later this year.
Tesla Shares Drop 12.2%
Tesla CEO and Founder Elon Musk announced that the company will need to get more funding from the capital markets in order to roll out the Model 3, an affordable electric car designed for mass production. Although Tesla already has substantial funds, Musk predicts that they will need more funds to launch the new car with low risk to company finances. In reaction to this statement, investors have been selling their Tesla shares, even Goldman Sachs have downgraded their position to sell.
Uber’s Challenges Continue
Uber has had a rough week. Last Thursday, Waymo, an Alphabet driving unit, accused Uber of stealing technology and patented ideas. The accusation states that a co-founder of Otto, a startup which was acquired by Uber last year, had previously worked at Waymo, where he stole around 14000 files before leaving the company. In addition to this major lawsuit, Uber’s Senior Vice President of Engineering left the company today due to sexual assault claims. Uber has already being called out for possibly having a sexual harassment culture by past employees.
Mobile World Congress 2017
The Mobile World Congress was held in Barcelona this week, and there was more than one big launch announced at the popular venue. Blackberry showcased the brand new KeyOne, which looks similar to most android phones while maintaining the traditional Blackberry keyboard. Samsung also launched the concept for their newest smartphone, the S8, and also displayed the Galaxy Tab S3 and new Samsung S pen. Chinese company, Huawei, introduced a new smartphone line, the P10. Huawei also made the goal to control 25% of the world’s market share in five years.