Spotify Swings to a Second-Quarter Loss
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
39 minutes ago
- New York Post
Berkshire takes $3.8 billion Kraft Heinz writedown, profit falls
Warren Buffett's Berkshire Hathaway said on Saturday it took a $3.76 billion writedown on its stake in Kraft Heinz during the second quarter, an acknowledgment the decade-old investment hasn't worked out. Berkshire also reported a 4% decline in quarterly operating profit as insurance underwriting premiums fell. The writedown and lower gains from common stocks caused a 59% drop in overall net income. Buffett's conglomerate signaled it remains cautious about market valuations, amid uncertainty about tariffs and growth in the broader economy. 6 Berkshire reported a near-record $344.1 billion cash stake for the second quarter. REUTERS It reported a near-record $344.1 billion cash stake, and sold more stocks than it bought for an 11th straight quarter. As of mid-July, Berkshire hadn't repurchased any of its own stock since May 2024. Buffett, 94, has led Omaha, Nebraska-based Berkshire since 1965, though he plans to step down at year-end. 'Investors are getting antsy and want to seek activity, and nothing is happening,' said Kyle Sanders, an analyst at Edward Jones. 'Buffett definitely views the market as overvalued, and will sit back and wait for something to come to him.' 6 Berkshire CEO Warren Buffett said he will leave the post at the end of this year. AP Uncertainty about trade policies, including tariffs, has become a headwind as delayed orders and shipments led to declining revenue at most of Berkshire's consumer businesses. Jazwares, which makes the popular Squishmallows plush toys, saw revenue fall 38.5% in the year's first half. Analysts viewed overall results as lackluster. 'Berkshire and the economy are at an inflection point,' said Cathy Seifert, a CFRA Research analyst. 'I don't think the market will embrace the combination of mediocre results, a lack of stock buybacks, and Berkshire's recent share underperformance amid a management transition.' Seifert and Sanders rate Berkshire 'hold.' Second-quarter operating income fell to $11.16 billion, or about $7,760 per Class A share, from $11.6 billion a year earlier. Results included $877 million of currency losses as the U.S. dollar weakened. Net income, including gains and losses on stocks such as Apple and American Express, fell to $12.37 billion from $30.35 billion. Revenue fell 1% to $92.52 billion. Buffett views unrealized investment gains and losses, including on stocks Berkshire has no plans to sell, as often meaningless to understanding his company. 6 Kraft Heinz said last month it would consider strategic alternatives, including a breakup. Getty Images The $3.76 billion after-tax writedown for Berkshire's 27.4% Kraft Heinz stake, equal to $5 billion before taxes, followed the struggling food company's announcement it would consider strategic alternatives, which could include a breakup. Berkshire had carried Kraft Heinz on its books at above-market value but said economic and other uncertainties, and its longer-term plans to remain an investor, made the gap 'other-than-temporary.' The writedown is Berkshire's second for Kraft Heinz, following a $3 billion writedown in 2019. Buffett acknowledged at the time that Berkshire overpaid in the 2015 merger of Kraft Foods and H.J. Heinz, one of his biggest investment missteps. Kraft Heinz has suffered as more shoppers favor healthier and private-label alternatives. Its approximately 200 brands include Oscar Mayer, Kool-Aid, Velveeta and Jell-O. 6 Kraft Heinz's plant in Montreal. JHVEPhoto – Berkshire also carries another big investment, its 28.1% stake in Occidental Petroleum at $5.3 billion above fair value, but reported no need for a writedown. Shares of Berkshire have fallen more than 12%, and lagged the S&P 500 by about 22 percentage points, since Buffett announced on May 3 he would step down as chief executive at year end. Vice Chairman Greg Abel, 63,will succeed him, though Buffett will remain chairman. Analysts said the premium embedded in Berkshire's stock price because of the presence of Buffett, arguably the world's most well-known investor, has eroded, while growth may slow in the insurance sector, a major Berkshire profit center. 6 Berkshire shares have fallen more than 12% since CEO Warren Buffett announced his departure on May 3. AP The lack of new investments has also been a drag. Analysts believe Berkshire's BNSF unit could buy CSX to create another transcontinental railroad, after Union Pacific agreed last week to acquire Norfolk Southern. Buffett transformed Berkshire over six decades from a troubled and since-closed textile company into a $1.02 trillion conglomerate. Berkshire owns several insurers and reinsurers, electric utility and renewable energy businesses, several chemical and industrial companies, and familiar consumer brands such as Dairy Queen, Fruit of the Loom and See's Candies. Berkshire said the 12% quarterly decline in insurance underwriting profit stemmed primarily from reinsurance businesses and some smaller insurance businesses. 6 Warren Buffett has led Berkshire since 1965. AFP via Getty Images Geico, its best-known insurance business, saw pre-tax underwriting profit rise 2%, as a 5% increase in premiums offset a smaller rise in accident losses. The car insurer has been ceding market share to State Farm and Progressive, while focusing on improving underwriting quality and technology and cutting jobs. Analysts said higher tariffs could be a headwind for Geico if the cost of auto parts rose, potentially increasing losses from accident claims. BNSF is also cutting expenses. Lower fuel costs helped boost quarterly profit 19% gain, though revenue and cargo volumes barely changed. The energy business, Berkshire Hathaway Energy, posted a 7% profit increase. Berkshire said it is evaluating the impact of the One Big Beautiful Bill Act, signed last month by President Trump, on the 'economics and viability' of its renewable energy, storage and technology-neutral projects.
Yahoo
an hour ago
- Yahoo
Tim Cook reportedly tells employees Apple ‘must' win in AI
Apple CEO Tim Cook held an hourlong all-hands meeting in which he told employees that the company needs to win in AI, according to Bloomberg's Mark Gurman. The meeting came after an earnings call in which Cook told investors and analysts that Apple would 'significantly' increase its AI investments. It seems he had a similar message for Apple employees, reportedly telling them, 'Apple must do this. Apple will do this. This is sort of ours to grab.' Despite launching a variety of AI-powered features in the past year under the Apple Intelligence umbrella, the company's promised upgrades to its voice assistant Siri have been significantly delayed. And Cook seemed to acknowledge that the company has fallen behind its competitors. 'We've rarely been first,' he reportedly said. 'There was a PC before the Mac; there was a smartphone before the iPhone; there were many tablets before the iPad; there was an MP3 player before iPod.' But in his telling, that didn't stop Apple from inventing the 'modern' versions of those products. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
USA Today
2 hours ago
- USA Today
WNBA-to-Boston celebrations premature? League pushes back on CT Sun move after Pagliuca deal
Fans celebrating the arrival of the WNBA to the City of Boston might want to temper their expectations in the short term. Recent reporting from the Boston Globe's Gary Washburn relates that the WNBA itself is throwing cold water on ta potential move of the recently-purchased Connecticut Sun to a new location. Former Boston Celtics minority owner and Bain Capital executive Steve Pagliuca recently purchased the team for a record $325 million, with another $100 million earmarked to build a dedicated practice facility for the team in Boston. But per Washburn, after news of the sale broke this week, the league sent the reporter a release pushing back on a potential move out of the Nutmeg state. "Relocation decisions are made by the WNBA Board of Governors and not by individual teams," related the WNBA to Washburn, also noting that "no groups from Boston applied for a team." This could put a bit of a damper on things, given Pagliuca would be one of the first names for an expansion team in the area, yet the former Celtics owner now finds himself the new owner (pending league approval) of a team the WNBA appears determined to keep in Connecticut. "Nine additional cities also applied for WNBA teams and remain under active consideration. Those other cities remain under consideration based on the extensive work they did as part of the expansion process and currently have priority over Boston," added the league. This course of action may have actually put the city behind the proverbial eight ball, as the WNBA may be looking to avoid following in the footsteps of the NBA with the highly unpopular move of the Seattle SuperSonics to Oklahoma City in the aughts. Interestingly, the release tendered to Washburn also notes that a "prospective Celtics owner has also reached out to the league office and asked that Boston receive strong consideration for a WNBA franchise at the appropriate time." Does this mean the ownership group helmed by Bill Chisholm currently in the process of securing final NBA approval to buy the Boston-based NBA ball club is also the leading group to secure a WNBA team in the same city? At present, details on all of the above are murky, but will likely continue to develop in the coming weeks. Listen to "Havlicek Stole the Pod" on: Spotify: iTunes: YouTube:
