⚡️ Musk vs Buffett

Elon Musk calls on Warren Buffett to buy some Tesla, Coinbase faces class action lawsuit and more

Author

Charla Hojnacki
May 06, 2024

Happy Monday Zingernation! When I have a ‘pile of cash’ it’s usually a few one-dollar bills and some quarters from change from my lunch. When Warren Buffett has a pile of cash, it’s almost $200 billion and Elon has an idea of where Buffett should spend it.

-Aaron Bry and Nic Chahine

Plus, check out the lithium company that’s helping power the EV boom.

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MARKET SNAPSHOT

Last Week: A strong Friday brought us into the green on the week as earnings reports continued to impress investors, as well as the Fed’s decision to maintain interest rates.

On Our Radar: Some Fed speak today with Richmond Fed President Tom Barkin speaking at 12:50 pm ET and then New York Fed President Williams speaking 10 minutes later.

Plus: Looking to learn more about options? Join options master Nic Chahine on WEDNESDAY at 6:00 PM EST! Click here to claim your free ticket.

TOP STORY
Excited Celebration GIF by SpongeBob SquarePants

In Short: Earnings reports and a dovish stance from the Federal Reserve lifted stocks last week. Major indices reacted positively, particularly to earnings from high-profile companies that hold significant weight in the indexes.

So: Apple and Amazon were top performers. Apple impressed investors with a record $110 billion stock buyback plan and better-than-expected guidance for the June quarter.

The Numbers: According to FactSet, a financial data analytics firm, 80% of S&P 500 companies have reported earnings so far. These reports have shown a higher-than-average percentage of companies exceeding earnings expectations and by a larger margin than usual.

Basically: FactSet estimates that S&P 500 companies’ blended year-over-year earnings growth is currently at 5%, up from 3.5% the prior week. This is the highest growth rate since Q2 2022.

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FIVE ZINGERS

Well, Ship: Shipping volume in the Red Sea is down 15-20% as geopolitical tensions are making it hard for transportation companies to operate.

Ozempic FTW: Elon Musk was busy on X, his social media platform, touting the potential of Ozempic to help treat the childhood obesity crisis in the U.S.

Bullseye: Target hopes to capitalize on international growth, aiming to expand its brand presence in Canada.

Undiscovered Gem: Here’s why one analyst calls Palantir a diamond in the rough ahead of its report tonight. 

Class Action Time: Coinbase is facing a class-action lawsuit as customers band together to sue the company for selling unregistered securities.  

ONE FOR THE ROAD
Meh Elon Musk GIF by MOODMAN

What’s Happening: Warren Buffett‘s Berkshire Hathaway, Inc announced its first-quarter results on Saturday, with the investment guru hosting the annual shareholder event in Omaha, Nebraska.

So: A regulatory filing also showed a second straight quarter of trimming its Apple stake. Tesla, Inc CEO Elon Musk saw this as a potential opportunity for Berkshire to invest in the electric vehicle maker.

What Happened: A Tesla fan following the weekend shareholder meeting offered some advice to Buffett on social media: “C’mon Warren Buffett, sell all your $AAPL and buy $TSLA.”

Berkshire’s Apple Holding: At the end of the first quarter, Berkshire’s Apple holding stood at $135.4 billion, down over 22% from the previous quarter. The exact number of shares will be known only when the firm files its 13F report.

Click here to read more.

PRESENTED BY SIMPLY WALL ST

Simply Wall St revolutionizes how individuals invest, empowering them to learn and apply the principles of long-term investing at every stage of their journey.

Visual stock screener: find stocks that match your criteria and get alerts for new stocks found.

Visual comprehensive stock reports: identify fundamental risks and opportunities in any business.

All your portfolios in one place: effectively analyze and track your investments.

Intelligent alerts: receive timely updates for new warning signs and opportunities.

“I believe that Simply Wall St is the best program out there. Not only do they provide all the analytic data you need but they display it in a user-friendly format that is actionable. They also provide weekly emails on what is going on with your portfolio, insider buying and selling, dividends analyst recommendations etc…”