By The central bank of the Czech Republic has recently made significant investments in several U.S.-traded stocks. In the third quarter, the Czech National Bank added approximately 50% to its investments in Apple, Tesla, AT&T, and Microsoft. These stock trades were disclosed in a form filed with the Securities and Exchange Commission.
Investment Updates and Growth
The bank, which manages $6.28 billion of U.S.-traded securities as of September 30, reported an increase from $4.40 billion as of June 30. Specifically, the Czech National Bank purchased an additional 818,501 Apple shares, bringing their total to 2.6 million shares of the iPhone maker.
Performance Comparison
Apple stock experienced a promising rise of 32% throughout the first nine months of 2023, nearly entirely recovering from a 27% drop in 2022. However, during the fourth quarter, shares have experienced a slight decline of 1.7%. In comparison, the S&P 500 demonstrated a 12% increase in the first nine months of 2023 after a 19% drop in 2022. As for the fourth quarter, the index experienced a decline of 4.0%.
Wall Street Concerns and Future Outlook
Recent weeks have seen concerns from Wall Street surrounding soft demand for iPhones. Analysts are also suggesting that Apple needs to catch up with its rivals in artificial intelligence. To address these expectations, Apple has scheduled an event on October 30th, where updated Mac models are expected to be launched. Additionally, the company will announce its fiscal-fourth-quarter earnings after the market closes on November 2nd.
Tesla’s Challenges and Progress
Tesla faced disappointing third-quarter earnings due to price cuts impacting profitability. In a regulatory form, the company disclosed that it is under investigation by the Justice Department concerning self-driving features, management benefits, vehicle range, and personnel decisions. On the bright side, Tesla continues to influence other automakers to adopt its plug standard for charging.
Czech National Bank Increases Investment in Tesla
The Czech National Bank has recently increased its investment in Tesla, acquiring an additional 163,682 shares in the third quarter. With this purchase, their total investment now stands at 482,573 shares. This move comes as Tesla’s stock experienced a remarkable surge of 103% in the first nine months of the year, following a substantial 65% decline in 2022. However, in the current quarter, Tesla’s shares have fallen by 17%.
Czech National Bank Expands Their Holding in AT&T
In addition to their investment in Tesla, the Czech National Bank has also expanded its holding in AT&T. During the third quarter, the bank purchased an additional 403,368 AT&T shares, bringing their total to 1.2 million shares. AT&T’s stock, on the other hand, witnessed a decline of 18% in the first three quarters of 2023, following a minor slip of 1% in 2022. However, in the current quarter, AT&T’s shares have risen by 1.3%.
The Summer Struggles of AT&T
During the summer months, AT&T faced significant challenges when its legacy lead telephone cables came under scrutiny following a report in The Wall Street Journal. The report examined the toxicity of these cables and resulted in a multidecade low for AT&T’s stock. CEO John Stankey reassured the public that the cables do not pose a public health crisis and emphasized that the company is actively cooperating with regulators. Despite this setback, AT&T reported strong financial performance in the third quarter and raised its free-cash-flow forecast.
Microsoft’s Remarkable Quarter
Microsoft recently completed a strong fiscal first quarter, showcasing exceptional results in cloud computing. However, an even more significant highlight for Microsoft occurred in October with the long-awaited completion of its acquisition of videogame publisher Activision Blizzard.
Czech National Bank Invests in Microsoft
The Czech National Bank has also made significant investments in Microsoft, acquiring an additional 418,433 shares during the third quarter. Their total investment in Microsoft now stands at 1.3 million shares. Microsoft’s stock experienced a notable increase of 32% in the first nine months of 2023, after facing a 29% decline in 2022. In the current quarter, Microsoft’s shares have already risen by 4.4%.
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