Berkshire Hathaway saw its Class A shares trade up 1.2% early Monday after the conglomerate posted an impressive 39% year-over-year growth in operating profit. Additionally, the Warren Buffett-led business also reported a significant increase in cash holdings, approaching a record level of $200 billion.
Shares of Paramount surged 2.4% following reports that the owner of Paramount Pictures and CBS Entertainment Group had entered formal acquisition negotiations with a group led by Sony Pictures Entertainment and Apollo. Interestingly, Warren Buffett revealed over the weekend that he had sold the entire Berkshire stake in Paramount at a loss.
On the flip side, the discount carrier Spirit Airlines experienced a 4% drop in premarket trading after reporting a loss of $1.46 per share in the first quarter, wider than the consensus estimate from analysts. Despite revenue meeting expectations, the company forecasted second-quarter revenue below estimates.
U.S. shares of Chinese electric vehicle maker Li Auto jumped 6.7% on the heels of strong order data for the L6 model. This positive momentum follows the start of deliveries for the L6 model last month, signaling potential growth for the company.
Shares of Tyson Foods gained 2.1% after the company posted fiscal second-quarter adjusted earnings of 62 cents per share, beating analyst expectations. However, revenue fell short of estimates, showcasing a mixed performance for the company.
Starbucks shares edged 1% higher after former CEO Howard Schultz posted on LinkedIn, highlighting the need for operational improvements in the U.S. While the company issued weaker-than-expected quarterly earnings and revenue, Schultz’s insights may guide future strategies.
Conversely, intimate apparel retailer Victoria’s Secret witnessed a 5% drop in its stock before the bell. This decline came after Morgan Stanley downgraded the company to underweight and adjusted its price target, citing concerns about negative EPS revisions and a challenging second half for specialty retail.
Autonomous aircraft company EHang Holdings saw its stock rise by 3.2% after receiving a bullish initiation of research coverage from Morgan Stanley. With an overweight rating, the bank emphasized EHang’s potential growth opportunities amid increasing regulatory and governmental support in China.
Shares of Pittsburgh-based steelmaker United States Steel rose over 2% following an upgrade from Morgan Stanley to overweight from equal weight. The bank highlighted internal improvements within the company, suggesting room for further growth even if the Nippon Steel buyout deal falls through.
Crypto exchange stock Coinbase experienced a 2.4% increase after Barclays raised its price target, indicating optimism for future performance. This adjustment came after Coinbase reported better-than-expected earnings, hinting at a positive trajectory for the company.
Canadian eye health company Bausch + Lomb saw its U.S.-listed shares climb 2.9% following an upgrade from Morgan Stanley to overweight from equal weight. The investment bank emphasized the market’s oversight of Bausch + Lomb’s progress in improving core profit margins.
Building technology company Johnson Controls witnessed a 1.1% decline in its stock price after a UBS downgrade to neutral from buy. UBS expressed concerns about Johnson Controls lagging behind its peers and facing challenges in meeting its 2024 outlook.