Tuesday’s Headlines: Buffett Buys Big

Tuesday’s Headlines: Buffett Buys Big

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Coupa Software (COUP) +9.2%

Calavo Growers (CVGW) +6.6%

Avalara (AVLR) +5.7%

Smartsheet (SMAR) +3.6%

Zendesk (ZEN) +2.8%

Moving Down ⬇️

Shopify (SHOP) -12.4%

Sea Limited (SE) -6.8%

Redfin (RDFN) -6.7%

nCino (NCNO) -6.2%

Duluth Trading (DLTH) -5.5%

1. Warren Buffett’s Berkshire Hathaway (BRK.B) announced its biggest deal in years yesterday, splashing out $11.6 billion for the insurance company Alleghany. The purchase, which sees Alleghany valued at roughly a 16% premium on its average stock price over the past 30 days, is the largest made by the Berkshire Hathaway conglomerate since it bought Precision Carparts about six years ago. In the interim, Buffett has repeatedly bemoaned the lack of companies to purchase and instead let his cash pile swell to $147 billion. Alleghany is a business that Buffett knows well, however, considering that Berkshire already owns two insurance companies — Geico and Gen Re. Read Alleghany's press release here.

2. Good quarter, uncertain outlook — the same script we’ve heard so many times this earnings season was repeated again with Nike (NKE) last night as the sportswear giant reported on its fiscal third-quarter earnings. The Oregon-based company beat expectations on both revenue and earnings for the quarter, with sales growth of 9% in its North American region leading the charge. Despite the high marketplace demand, however, worries over supply chains, inventory, and delivery options continue to bedevil global retailers. As such, management has declined to give an outlook on the year until the next quarterly report. More here.

3. The pressure continues to mount on Boeing after an aircraft crash in southern China yesterday appears to have claimed the lives of more than 130 people. The incident, which involved a Boeing 737-800 aircraft, is still being attended by emergency services, but early reports indicate that the aircraft fell almost vertically out of the sky and into a mountain. This crash is just the latest in a series of high-profile scandals involving the company, including an 18-month inquiry into two Boeing 737 MAX crashes in Indonesia and Ethiopia that were described as the "horrific culmination" of failures at the company and among regulators. More on this here.