Key Points To Watch Out For:
- Berkshire Hathaway shares rose 1.4% following the announcement of an increase in operating profits
- Alibaba fell 2% in Hong Kong after an investment of 52 billion dollars in AI and cloud was announced
- Just Eat shares shot up by more than 50% following the announcement of its acquisition by Prosus, which saw its shares fall by 7%
Berkshire Hathaway (BRK): Increase in profits boosts share price
Berkshire Hathaway shares climbed 1.4% in premarket trading following the conglomerate’s report of growth in operating profits, expected to reach $47.4 billion in 2024. The company’s strong business figures continue to inspire investor confidence.
Rheinmetall (RHM), BAE Systems (UK:BA), Thales (HO), Airbus (AIR): Boost for European defense
A number of European defense companies saw their shares rise, boosted by expectations of higher military spending in Germany. This optimistic outlook could be maintained if the new German government’s policy favors an expansion of the defense budget.
Alibaba (BABA): Strong investment in AI fails to convince the market
Alibaba has announced an ambitious investment plan of $52 billion in artificial intelligence and in cloud computing over the next three years. The news was not well received, however, and its stock fell 2% in Hong Kong, revealing concerns about the profitability of the strategy.
Just Eat Takeaway.com (TKWY), Prosus (PRX): Merger generates mixed reactions
Shares in Just Eat Takeaway.com shot up more than 50% in Amsterdam after Prosus agreed to buy the company for $4.3 billion. In comparison, Prosus fell 7% as investors assessed the financial impact of the takeover.
Sugentech, Cellid: Rally after new health alert
Asian vaccine and diagnostic kit companies such as Sugentech and Cellid rallied sharply following news that a new coronavirus has been identified in bats. This move suggests a possible increase in demand for their products.
Subsea7 (SUBC): Merger with Saipem boosts share price
Shares in Subsea7 rose 7% in Norway after it was announced that it would merge with Saipem (SPM) in a deal valued at $4.9 billion. The move will strengthen the presence of both firms in the energy services sector.
Today’s earnings highlights
Today, the financial reports of several key companies are expected:
- Domino’s Pizza (DPZ)
- Diamondback Energy (FANG)
- Owens Corning (OC)
Investors will closely monitor these results to assess performance in their various industries.
