The stock portfolio of the International Business Machines made significant changes to its stock portfolio. The IBM (ticker: IBM) Retirement Fund chopped investments in Apple (ticker: AAPL), Microsoft (ticker: MSFT), and Tesla (ticker: TSLA) in the fourth quarter despite the fact that all three stocks outperformed last year. Instead, the fund took a position in General Electric (ticker: GE) stock, whose performance was lacklustre. In a form filed with the Securities and Exchange Commission, the pension revealed the trade positions it had taken.
IBM’s pension sold 186,471 Apple shares and ended December with 257,023 shares of the iPhone and Mac maker. The stock gained 34% in 2021, while the S&P 500 rose 27% in the same period. So far this year, the stock has fallen 8.5%, while the index is 7.7% down.
Apple’s fourth-quarter report fell woefully short of analyst expectations as a result of disappointing iPhone sales. Earlier this month, before the market slump pushed tech stocks downhill, the company’s market capitalization topped $3 trillion- a first for a publicly-traded company. Analysts already predict a $4 trillion market cap on the horizon.
The IBM retirement fund sold 87,362 shares of Microsoft and ended the year with 125,487 shares of the software company. The stock gained 51% in 2021, and it’s been down 12% so far.
Microsoft’s cloud software has been the magic bullet the company needed to boost its earnings reports. In an announcement last week, the company spoke about its acquisition of videogame publisher Activision Blizzard (ticker: ATVI) in a nearly $70 billion deal.
Despite the fact that Wall Street has been raising its earning’s estimates, Tesla shares have still had to battle in a tough environment. Tesla stock gained 50% in 2021, and so far, shares of the EV maker have dropped 11%. Late last year, CEO Elon Musk’s sales of Tesla stock pressured the shares with the company announcing a sizable recall near the close of December.
IBM’s pension sold off 9,062 Tesla shares to close up with 13,468 shares.
Instead, the retirement fund purchased 18,199 shares of GE in its fourth quarter- shares it didn’t previously hold at the close of its third quarter. GE stock gained by 9.3% in 2021, and so far, shares are up to 1.9%.
Previously, GE announced its plans to split into three companies- aerospace, healthcare, and power generation. Some analysts remain sceptical of the prospects of the separation, while others feel they can spot a possible upside in “the great unwinding”.