On Monday, U.S. stocks fell, breaking a nine-day winning streak for both the S&P 500 and Dow Jones Industrial Average. Several key companies made headlines with major updates that influenced their stock prices.
Berkshire Hathaway Drops After Warren Buffett’s Exit Announcement
Berkshire Hathaway Class B shares dropped 5.1% after Warren Buffett announced he would retire as CEO by year-end. Greg Abel, his chosen successor, will take over. The announcement came during the company’s annual shareholder meeting, where it also revealed a 14% drop in Q1 operating profit, totaling $9.6 billion, due to lower insurance earnings and foreign currency losses.
Despite this, Berkshire’s cash reserves reached $348 billion, but Buffett noted he hasn’t made new investments because he hasn’t found the right opportunities. On trade policies, he cautioned against using tariffs as weapons, saying global cooperation is more beneficial.
Microsoft Becomes Most Valuable U.S. Company
Microsoft shares rose 0.2%, starting the week as the largest U.S. company by market value. It now holds a $3.24 trillion market cap, overtaking Apple, which sits at $2.97 trillion. Microsoft added over $322 billion in market cap last week, driven by strong Q3 earnings and growth in its Azure cloud business.
Apple Continues to Fall
Apple shares declined 3.2%, continuing losses from last week. Its market value dropped $58.7 billion following earnings that beat expectations but showed sluggish services revenue and weak sales in China.
Media Stocks React to Trump’s Tariff Proposal
Several media and entertainment companies declined after Donald Trump said he would impose a 100% tariff on foreign-made films if re-elected. The proposal impacted:
- Netflix (-1.9%)
- Disney (-0.4%)
- Paramount Global (-1.6%)
- Warner Bros. Discovery (-2%)
- Comcast (unchanged)
Trump claimed the move supports domestic production and addresses national security concerns.
Skechers to Go Private in $9.42 Billion Deal
Skechers stock surged 24% to $61.39 after it announced a buyout deal with 3G Capital, valuing the company at $9.42 billion or $63 per share in cash.
Mixed Results in Tech and Food Sectors
- On Semiconductor beat earnings expectations with 55 cents per share and $1.45 billion in revenue, but its 8.4% stock drop reflected weak demand across all segments.
- Tyson Foods fell 7.8%, despite better-than-expected earnings. Revenue missed forecasts, and the company projected flat to slight growth in annual sales.
Howard Hughes Gets Boost from Bill Ackman
Howard Hughes Holdings rose 2.9% as Pershing Square, led by Bill Ackman, announced a $900 million investment, increasing its stake to nearly 47%.
Key Earnings Reports to Watch This Week
Reports expected after Monday’s close include:
- Palantir Technologies
- Ford Motor
- Vertex Pharmaceuticals
- Diamondback Energy
- Clorox
Later this week, investors will watch earnings from:
- Advanced Micro Devices (AMD)
- Disney
- Uber Technologies
- Novo Nordisk
- Coinbase
- Shopify
- Warner Bros. Discovery
- Constellation Energy
- Carvana, and more.
