Schlumberger Limited (SLB) Slid on Falling Oil Prices and Trade Tensions

Ariel Investments, an investment management company, released its “Ariel Appreciation Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. Following the initial market decline triggered by the "Liberation Day" tariff announcement, the stock market rebounded, bolstered by heightened interest in AI stocks, positive economic data, and robust corporate earnings. Against this backdrop, the fund increased +5.81% in the second quarter, outpacing the Russell Midcap Value Index’s +5.35% returns and trailing the Russell Midcap Index’s +8.53% returns. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, Ariel Appreciation Fund highlighted stocks such as Schlumberger Limited (NYSE:SLB). Headquartered in Houston, Texas, Schlumberger Limited (NYSE:SLB) is an oil field services company. The one-month return of Schlumberger Limited (NYSE:SLB) was -1.22%, and its shares lost 32.61% of their value over the last 52 weeks. On July 18, 2025, Schlumberger Limited (NYSE:SLB) stock closed at $33.32 per share, with a market capitalization of $49.702 billion.

Ariel Appreciation Fund stated the following regarding Schlumberger Limited (NYSE:SLB) in its second quarter 2025 investor letter:

"Shares of Schlumberger Limited (NYSE:SLB), the largest oilfield services company in the world by revenue, also underperformed amidst falling oil prices and trade tensions. While quarterly earnings came in slightly behind expectations, the market appears more concerned with the rising supply and weak macroeconomic conditions weighing on energy prices and oilfield services demand going forward. Nonetheless, we believe there are tailwinds supporting rising demand over the medium-term, as national oil companies invest in long-cycle projects to grow capacity and address the natural decline of production. We think SLB is the best positioned among the oilfield services companies, given their leading scale and expertise across nearly every product and service category, as well as their exposure to more resilient international markets. In the long run, we expect SLB will continue to evolve their capabilities to help clients with rising energy needs going forward."

Schlumberger Limited (NYSE:SLB) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Schlumberger Limited (NYSE:SLB) at the end of the first quarter, compared to 80 in the previous quarter. While we acknowledge the potential of Schlumberger Limited (NYSE:SLB) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Schlumberger Limited (NYSE:SLB) and shared the list of cheap stocks under $50 to buy. Ariel Appreciation Fund added Schlumberger Limited (NYSE:SLB) to its portfolio during Q1 2025. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.