Friday’s Headlines: Buffett Bets Big On Tech

Friday’s Headlines: Buffett Bets Big On Tech

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Constellation Brands (STZ) +4.6%

Costco (COST) +4.0%

IDEXX Laboratories (IDXX) +3.1%

CrowdStrike (CRWD) +2.8%

Cloudflare (NET) +2.5%

Moving Down ⬇️

Baozun (BZUN) -6.7%

Twitter (TWTR) -5.4%

Huazhu Hotels Group (HTHT) -4.5%

Trip.com Group (TCOM) -4.4%

Lemonade (LMND) -4.0%

1. At 91, Warren Buffett’s still got the moves, with Berkshire Hathaway (BRK.B) quietly taking a majority share in computer giant, HP. Berkshire purchased nearly 121 million shares of HP, worth roughly $4.2 billion based on Wednesday’s closing price for the stock, amounting to a holding of about 11%. Despite recent hesitancy around consumer brands amid recession and inflation fears, Berkshire’s HP stake indicates that Buffett sees value in the business, which has lagged behind its rivals in recent years. It is yet another big buy from Berkshire after the conglomerate announced a deal to buy insurance company Alleghany for $11.6 billion last month and has been scooping up shares of energy stock Occidental Petroleum. Read the full story here.

2. Shares in Constellation Brands (STZ) jumped almost 5% yesterday following an impressive earnings report for the company. The producer of beer, wine, and spirits reported an earnings beat of $2.37 per share and revenues of $2.1 billion, whilst analysts expected earnings of $2.10 per share and revenues of $2.02 billion. What’s more, Constellation also unveiled that it was performing an accelerated share repurchase agreement to buy back $500 million of its Class A common stock, which is expected to be completed no later than May 2022. This is a strong sign of confidence from Constellation Brands as it appears to view its stock price as undervalued, and creates value for its shareholders. You can read the official press release here for more.

3. If you were to look at Costco’s (COST) price performance over the past month, you wouldn’t know that the market was suffering from inflation fears. Luckily, we also chose Costco as Stock of the Month in February, in which time it has since grown 18%.  The wholesaler saw its stock spike once more on Thursday following an optimistic March performance report, which showed same-store sales jumping 17.2% in the five weeks ended April 3, led by a 19.1% increase in U.S. sales alone. Although foot traffic was a key component in this following the easing of COVID-19 lockdowns, e-commerce remained strong too, climbing 9.2% last month. With its share price up more than 16% in the last month, compared to the S&P 500’s (VOO) 8% rise, investors will be hotly anticipating Costco’s May 26th earnings call. Read Costco’s official press release here

JamieJamie

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