Monday’s Headlines: Buffett Buys Back $9 Billion In Berkshire
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
The Trade Desk (TTD) +26.6%
GoPro (GPRO) +15.7%
Zillow (Z) +14.0%
Square (SQ) +13.0%
Roku Inc. (ROKU) +12.6%
Moving Down ⬇️
TrueCar (TRUE) -26.4%
Bill.com (BILL) -7.9%
Twilio (TWLO) -5.0%
Chuy's (CHUY) -4.6%
1. In typical Buffett fashion, the Oracle of Omaha hosted Berkshire Hathaway’s (BRK.B) Q3 earnings conference over the weekend, showing that it was ramping up stock buybacks like never before. While the coronavirus pandemic weighed on its operating earnings — down 30% year-over-year (YoY) to $5.478 billion — Berkshire bought back a record $9 billion of its own stock, far below estimates of $3.2 billion and bringing 2020’s total buybacks to $15.7 billion. It’s clear that Buffett thinks the conditions are right to buy Berkshire stock, which is down 8% year-to-date, compared to a 10% total return for the S&P 500 (VOO) in the same period, and with a $145.7 billion cash pile, what’s to stop him? Get the official earnings release here.
2. One of the biggest winners of earnings season so far has undoubtedly been Square (SQ), which surged 13% on Friday after blowing past Wall Street’s expectations for the quarter a day earlier. The San Francisco-based payments company reported a 140% increase in net revenue to $3.03 billion in the third quarter, thanks largely to the success of its Cash App, which made up almost half of the company’s total gross profit of $794 million. Square presents itself as an alternative to PayPal’s (PYPL) Venmo but has solidified its growth by offering a wider variety of financial services, including cryptocurrency and stock trading. Get the official press release here.
3. It was certainly a day to forget for the vehicle sales service, TrueCar (TRUE), which fell 26.4% on Friday despite beating on earnings. TrueCar came out with quarterly earnings of $0.14 per share — having just broken even a year ago — and beating estimates of $0.09 per share. However, the trouble came from revenue, which fell 15% YoY to $77.25 million. Though CEO Mike Darrow conveyed optimism during the earnings call, there’s no doubt that ongoing COVID-19 restrictions will hurt the company’s bottom line as financial uncertainty continues to influence consumer spending habits against large purchases such as a new car. Get the full earnings report here.
There are 2 companies on the MyWallSt shortlist that will report earnings today.
Get this week’s full calendar here.