The asset manager of Norway's largest bank just cut back on some members of the Magnificent Seven, making a big bet on a tech stock outside of the group.
DNB Asset Management cut positions in Apple, Tesla, and Microsoft, and more than doubled a stake in data-analytics firm Palantir Technologies in the first quarter. DNB disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.
DNB didn't respond to a request for comment on the investment changes. It manages assets of $86 billion.
Apple stock dropped 11% in the first quarter, compared with a 10% rise in the S&P 500. So far in the second quarter, shares are down 11%, while the index is 5% lower.
DNB sold 668,300 Apple shares to end the first quarter with 3.6 million shares.
Apple has been considering a new Asian manufacturing base to reduce its exposure to China, where many of its products are made. Like many of its peers in the Magnificent Seven, Apple is sitting on a lot of cash that can't be easily put to work. Apple recently ended its car project, which once had the potential to disrupt the electric-vehicle space in general, and Tesla in particular.
Tesla's first-quarter deliveries showed the worst year-over-year decline in the company's history. April also saw the company announce layoffs, and two top deputies depart. Also this month, people who preordered Tesla's distinctive Cybertruck were complaining that the company was delaying their delivery dates.
DNB sold 103,200 Tesla shares to end the first quarter with 599,600 shares. Tesla stock dropped 29% in the first quarter, and so far in the second shares are 16% lower.
The manager sold 750,000 Microsoft shares in the first quarter to cut its stake to 3.5 million shares. Microsoft stock rose 12% in the first quarter. It is 5% lower so far in the second.
Microsoft said this month it would unbundle Teams from its Office applications for enterprise customers. The company had been under regulatory pressure to make changes. Morgan Stanley said this month that Microsoft's earnings can double by fiscal 2029, bolstered by cloud computing and artificial intelligence.
Palantir just reached an AI-software deal with Oracle. Early in 2024, there were concerns over the company's slowing growth in government deals. But big defense contracts are still rolling in.
DNB bought 429,300 more Palantir shares to lift its stake to 753,600 at the end of the first quarter. Palantir stock surged 34% that quarter, while the shares have fallen 11% so far in the second.
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
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