Berkshire Hathaway’s Class A shares saw a 1.2% increase in early Monday trading following a substantial 39% year-over-year growth in operating profit. The conglomerate, led by Warren Buffett, also experienced a significant boost in cash holdings, nearing the $200 billion mark.
Paramount shares surged 2.4% after reports surfaced that the entertainment company had initiated formal acquisition negotiations with a consortium led by Sony Pictures Entertainment and Apollo. Interestingly, Warren Buffett confessed to selling the entire Berkshire stake in Paramount over the weekend, resulting in a loss.
Despite market expectations, discount carrier Spirit Airlines saw a 4% drop in premarket trading following a first-quarter loss of $1.46 per share, slightly wider than analysts’ estimates. The airline’s second-quarter revenue forecast fell short of expectations, adding to investor concerns.
Li Auto’s Success
U.S. shares of Chinese electric vehicle maker Li Auto soared 6.7% after strong order data for the L6 model were revealed. The L6, which began deliveries last month, has evidently captured market interest and investor confidence.
Tyson Foods’ shares rose 2.1% after the company reported fiscal second-quarter adjusted earnings of 62 cents per share, surpassing analysts’ predictions. However, revenue fell slightly short of expectations, highlighting the company’s inconsistent performance in key financial indicators.
Starbucks’ Struggles
Starbucks shares inched up by 1% after former CEO Howard Schultz criticized the coffee chain’s U.S. operations in a LinkedIn post and provided suggestions for improvement. The company’s weaker-than-expected quarterly earnings and revenue announcement last week have put pressure on Starbucks to address underlying weaknesses.
Victoria’s Secret stock plummeted 5% in premarket trading as Morgan Stanley downgraded the intimate apparel retailer to underweight and revised its price target downwards. The outlook for negative EPS revisions and challenges in the second half of the year have raised concerns among investors.
EHang Holdings’ Optimism
Autonomous aircraft company EHang Holdings saw a 3.2% increase following a positive research coverage initiation from Morgan Stanley. The bank’s overweight rating highlighted EHang’s favorable position in the market, driven by regulatory and governmental support in China.
Pittsburgh-based steelmaker United States Steel experienced a more than 2% rise after Morgan Stanley upgraded its rating to overweight from equal weight. The upgrade emphasized the company’s internal improvements, indicating potential for further growth despite uncertainties surrounding the Nippon Steel buyout deal.
Crypto stock Coinbase’s value climbed 2.4% as Barclays raised its price target, signaling reduced downside risk for investors. The price adjustment came after Coinbase surpassed earnings expectations, demonstrating the company’s ability to navigate market fluctuations effectively.
Bausch + Lomb’s Progress
U.S.-listed shares of Canadian eye health company Bausch + Lomb increased by 2.9% following an upgrade to overweight from equal weight by Morgan Stanley. The investment bank highlighted Bausch + Lomb’s overlooked progress in boosting core profit margins, indicating strong potential for future growth.
Johnson Controls’ Challenges
Building technology company Johnson Controls faced a 1.1% dip after UBS downgraded its rating to neutral from buy. UBS expressed concerns about Johnson Controls lagging behind industry peers and the company’s ability to meet its 2024 financial outlook.