NEW YORK, NY / ACCESSWIRE / May 7, 2018 / Apple shares hit a new record on Friday after traders learned that Warren Buffet's Berkshire Hathaway had scooped up a substantial stake in the company during the first quarter. Zynga shares also saw gains after reporting strong first quarter results and that it's co-founder and former CEO has given up voting control.
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Apple Inc. shares closed up 3.92% on Friday and hit a new record high of $184.25. It was last Thursday that CNBC reported that the Oracle of Omaha, Warren Buffett, had loaded up on Apple's stock and purchased 75 million shares during the first quarter. Buffett said to CNBC on Friday, "It is an unbelievable company. If you look at Apple, I think it earns almost twice as much as the second most profitable company in the United States. Over the last year we've bought more Apple than anything else." It was last week that Apple's CEO Tim Cook said that the company earned almost $150 billion in revenue and $34 billion in earnings for the first half of its fiscal year. The company's iPhone X was the best-selling smartphone overall for the first quarter of 2018 according to Strategy Analytics. The company shipped 16 million iPhone X units from January to March. It's iPhone 8 and iPhone 8 Plus were the next two spots on the list of best-selling smart phones. The iPhone 8 sold 12.5 million units while the iPhone 8 Plus sold 8.3 million units.
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Zynga Inc. shares closed up 3.30% on Friday on significant trading volume of a little over 24 million shares. The company's former CEO and founder Mark Pincus has given up voting control. Pincus has converted all of his "super-voting" Class C shares (70 votes per share) and Class B shares (seven votes per share) into common Class A shares with one vote per share in the online game maker known for Word with Friends and Farmville. He also relinquished his voting control taking his voting power from 70% to 10% and created a single-class share structure. While the move has been portrayed as shareholder friendly, it frees up Mark Pincus to sell his entire stake in the company. He told the New York Times, "the company' doesn’t benefit anymore from a multiclass structure." The company's CEO Frank D. Gibeau said during its first quarter earnings call, "Mark will continue to serve on Zynga's Board of Directors as nonexecutive Chairman. We welcome this decision as a significant sign of confidence from Mark in Zynga's future growth prospects." For the quarter, Zynga reported net income of 1 cent. Adjusted earnings were 2 cents a share. Wall Street analysts had been waiting for earnings of 2 cents a share as well. Adjusted revenue at $219.5 million was also higher than the $213.6 million that analysts had expected. Looking ahead the company expects revenue in the range of $218 million. Analysts had expected revenue of $222.4 million.
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