Streetbeat News

Acquisitions Mergers

BRK

Ruth Gottesman, widow of David Gottesman, a former Berkshire Hathaway Inc. director and Warren Buffett's colleague, has donated $1 billion to the Albert Einstein College of Medicine. This donation, funded by a portfolio of Berkshire Hathaway stock left to her by her late husband, aims to provide free tuition for medical students. It's one of the largest charitable donations to a U.S. school and possibly the largest to a medical school ever. Berkshire Hathaway's shares have significantly outperformed the broader market over the past decades.

Portfolio Pulse from Chris Katje

February 27, 2024 | 9:28 pm

AMZN

FTEC

GOOG

MSFT

XLK

Google Cloud has criticized Microsoft's cloud computing strategies, suggesting Microsoft aims for a monopoly that could stifle innovation in technologies like generative AI. Amid regulatory scrutiny over Microsoft and Amazon's dominant cloud market positions, Google, ranking third, has joined Amazon in complaining to UK regulators about Microsoft's practices. Microsoft, however, asserts that cloud competition is healthy. Microsoft and Google have seen significant stock gains, while ETFs like FTEC and XLK have substantial exposure to Microsoft.

Portfolio Pulse from Anusuya Lahiri

February 27, 2024 | 9:06 pm

NFGC

SPOFF

EarthLabs (OTC:SPOFF), a Canadian mining investment and technology company, is preparing for a potential commodity market boom by adopting a multi-faceted business approach. This includes investments in mining, a media group comprising several platforms for outreach, and a robust royalty portfolio, including a notable royalty on New Found Gold Corp (NYSE:NFGC). CEO Denis Laviolette highlighted EarthLabs' unique strategy, comparing it to General Electric's broad product range and the versatility in mixed martial arts. Laviolette also discussed the challenges and opportunities in the African commodity market, emphasizing the competition from China and India, and the potential for the continent's mining sector. Additionally, he addressed the current state of the metals and minerals space, the difficulty for U.S. retail investors to access Canadian junior miners, and EarthLabs' efforts to simplify access to mining investments.

Portfolio Pulse from Melanie Schaffer

February 27, 2024 | 8:40 pm

AAPL

TSLA

Apple Inc has halted its electric vehicle (EV) project, Titan, to redirect resources towards its generative AI division. This decision, affecting nearly 2,000 employees, comes after multiple project delays and strategy changes. Despite spending millions on R&D, concerns about the EV's profit margins led to this strategic pivot. The move reflects broader industry trends, with some OEMs scaling back on EV efforts amid market pressures. Meanwhile, Apple's focus on AI is seen as a promising shift, with expectations of a new AI foundation model release.

Portfolio Pulse from Adam Eckert

February 27, 2024 | 8:17 pm

CMCSA

PARA

WBD

Warner Bros. Discovery Inc (NASDAQ:WBD) has ended talks about acquiring Paramount Global (NASDAQ:PARA), causing both stocks to rise. Despite this, Paramount is still exploring sale options, with Skydance Media conducting due diligence and Byron Allen offering $14 billion. Comcast Corp (NASDAQ:CMCSA) is focusing on potential collaborations rather than acquisition. Both WBD and PARA face challenges, with WBD's shares dropping 10% after disappointing earnings and PARA trading near a 52-week low. WBD has lost 25.3% YTD, and PARA 22%.

Portfolio Pulse from Anusuya Lahiri

February 27, 2024 | 7:19 pm

DHR

VLTO

BMO Capital Markets analyst John P. McNulty initiated coverage on Veralto Corporation (VLTO) with an Outperform rating and a price target of $97, citing strong EPS growth potential in the next 2-3 years. Veralto, which spun off from Danaher Corp (DHR) and began NYSE trading in October 2023, is expected to leverage its high-margin businesses and significant free cash flow for M&A to support double-digit EPS growth. The company recently reported Q4 earnings that beat consensus estimates and anticipates flat Y/Y non-GAAP core sales for Q1 FY24 with adjusted EPS of $0.73-$0.78.

Portfolio Pulse from Lekha Gupta

February 27, 2024 | 7:15 pm

AMD

NVDA

TSM

US chipmakers, including Nvidia Corp and Advanced Micro Devices, Inc (AMD), are seeking additional federal subsidies as demand for AI technology chips surges, with requests totaling over $70 billion against the $39 billion allocated. The U.S. aims to increase domestic semiconductor production to reduce reliance on foreign chips and strengthen its supply chain. AMD is entering the AI accelerator market with its MI300 chip, targeting a market expected to exceed $400 billion in the next four years. Both AMD and Nvidia have seen significant stock gains this year, though concerns about Nvidia's valuation sustainability have been raised.

Portfolio Pulse from Anusuya Lahiri

February 27, 2024 | 7:14 pm

AXP

BRK

CVX

DHI

LEN

NVR

OXY

Warren Buffett's Berkshire Hathaway Inc sold its entire stake in D.R. Horton Inc, deviating from its typical buy-and-hold strategy. The sale occurred after less than a year of holding, despite D.R. Horton's stock price increasing by 70% in 2023. Berkshire Hathaway also holds stakes in Lennar Corporation and NVR Inc, but there's no indication of selling these. Buffett remains positive about long-term holdings like Coca-Cola Co and American Express Company, as well as U.S. oil companies Occidental Petroleum Corporation and Chevron Corp.

Portfolio Pulse from Neil Dennis

February 27, 2024 | 6:47 pm

PARA

PARAA

Paramount Global (NASDAQ:PARA)(NASDAQ:PARAA) is set to report Q4 financial results, with analysts expecting a revenue of $7.85 billion, a decrease from the previous year but the highest of the fiscal year. The company is anticipated to report a loss per share, contrasting with the prior year's profit. Analysts have mixed ratings on Paramount, with concerns over television revenue and potential mergers. Paramount is considering ventures or buyouts with several companies and is expected to undergo layoffs. The company's streaming platform, Paramount+, gained 2.7 million subscribers in Q3. The first quarter included Super Bowl LVIII, which had record viewership and ad revenue potential.

Portfolio Pulse from Chris Katje

February 27, 2024 | 6:46 pm

RCM

Coliseum Capital Management, a major shareholder of R1 RCM Inc (NASDAQ:RCM), believes New Mountain Capital's $13.75/share acquisition offer undervalues R1 RCM. Despite missing Q4 revenue expectations, R1 RCM reported a significant year-over-year revenue increase and a positive GAAP net income, contrasting with the previous year's loss. The company's CEO highlighted achievements and future growth plans, including revenue and EBITDA projections for 2024. RCM shares rose 4% to $14.45.

Portfolio Pulse from Vandana Singh

February 27, 2024 | 6:06 pm