The asset manager of Norway’s largest bank has just cut some members of the Magnificent Seven and made a big bet on tech stocks outside the group.
DNB Asset Management reduces Apple position
,
tesla
,
and Microsoft
,
In the first quarter, it more than doubled its stake in data analytics company Palantir Technologies. DNB disclosed the stock transactions in a form filed with the Securities and Exchange Commission.
DNB did not respond to requests for comment on the investment changes. The company manages $86 billion in assets.
Apple shares rose 10% in the first quarter, compared to a decline of 11% in the first quarter.
S&P500.
So far in the second quarter, the stock is down 11% and the index is down 5%.
DNB sold 668,300 Apple shares, ending the quarter with 3.6 million shares.
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Apple has been considering new manufacturing locations in Asia to reduce its exposure to China, where many of its products are made. Like many of its peers in “The Magnificent Seven,” Apple has a lot of cash that it can’t easily tap into. Apple recently ended a car project that once had the potential to be disruptive to the electric vehicle sector in general and Tesla in particular.
Tesla’s first-quarter vehicle deliveries showed the worst year-over-year decline in the company’s history. In April, the company also announced layoffs, with two top executives retiring. Also this month, people who pre-ordered Tesla’s signature Cybertruck complained that the company was delaying delivery times.
DNB sold 103,200 Tesla shares, ending the quarter with 599,600 shares. Tesla shares fell 29% in the first quarter, and the stock is down 16% so far in the second quarter.
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The manager sold 750,000 Microsoft shares in the first quarter, reducing his holdings to 3.5 million. Microsoft stock rose 12% in the first quarter. The second time so far it has fallen 5%.
Microsoft announced this month that it would separate Teams from Office applications for business customers. The company was under pressure from regulators to make changes. Morgan Stanley said this month that cloud computing and artificial intelligence could double Microsoft’s revenue by 2029.
Palantir just signed an AI software agreement with Oracle
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In early 2024, there were concerns about the company’s slowing growth in government transactions. However, large defense contracts are still in the works.
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DNB purchased an additional 429,300 shares of Palantir stock, raising its holdings to 753,600 shares at the end of the first quarter. Palantir stock rose 34% in the quarter, but is down 11% so far in the second quarter.
Inside Scoop is a regular feature in Barron’s that covers stock trades by corporate executives, board members, so-called insiders, as well as major shareholders, politicians, and other celebrities. Because of their insider status, these investors are required to disclose their stock transactions to the Securities and Exchange Commission or other regulatory bodies.
Follow us by emailing Ed Lin at edward.lin@barrons.com @baron_1212.
