The Rundown - Warren Buffett Stays Loyal to Apple, Tyson Foods Beats Profit Estimates

Starting point is 00:00:00 Public.com presents the rundown, your daily market update in five minutes. My name is Zadmani, and today is Monday, May 6th. In today's episode, we recap last week's roller coaster of a week and preview a busy week with earning from some major companies. We also catch you up at all the news coming out of Berkshire Hathaway's annual shareholder meeting and why Warren Buffett is holding on to so much cash. And stick around to the end of the show to find out why everyone you know is going to Japan. All right, let's go.

Starting point is 00:00:28 Well, guys, last week, was a roller coaster for the stock market. I'm still a little nauseous from what happened last week. But ultimately, all three major indices finished the week in the green. Stocks had a big jump on Friday after earnings beat from Apple and also the April's job report that showed that job growth was slowing down. Yes, the market was celebrating fewer people getting jobs

Starting point is 00:00:48 because it opens up the hope for a potential rate cut sooner rather than later from the Fed. We'll see how long that hope lasts for. Earning season rolls on this week. We're getting pretty close to the end. We still got some notable companies reporting earnings. this week, like Palantir, Disney, Uber, Rivian, Airbnb, even AMC are just some of the companies reporting earnings this week.

Starting point is 00:01:08 We're going to cover all the major ones on the rundown, so make sure you guys are tuning in all week to stay in the loop. Let's run through some headlines, starting with Berkshire Hathaway's annual shareholder meeting over the weekend in Omaha, Nebraska. Now, I don't know about you guys, but all weekend, my social feeds was about just two things, Warren Buffett and Drake and Kendrick. Now, we're not here to talk beef, we're here to talk business. going to focus on Warren Buffett here. Warren Buffett hosted thousands of investors in Omaha, Nebraska

Starting point is 00:01:34 over the weekend. And for some investors that attend, it's like euphoria. If you know, you know. Now, this year was a little bit different because it was the first meeting since the passing of Warren Buffett's longtime partner, Charlie Munger. And that kind of brought some attention to Warren Buffett's own mortality and Berkshauer's succession plan. While Warren Buffett took questions for five hours and answered some of those questions. Here were the few key takeaways from the five-hour Q&A SESH. First of all, Warren Buffett has trimmed his stake. in Apple by about $19 billion in Q4, but it still remains Berkshire's largest holding. He still holds about $135 billion of Apple stock at the end of Q1. Warren Buffett hinted at tax reasons for the

Starting point is 00:02:12 motivation of the sale. I thought maybe he didn't like the Apple Vision Pro or something. By the way, Apple CEO Tim Cook was in attendance. Warren Buffett also talked about his stake in Paramount, which he dumped the entire steak for a big loss. Berkshire owned about 10% of Paramount. Warren Buffett said that it was his call to invest in the company, and he takes responsibility for the loss. And then Warren Buffett talked about who will take over Berkshire Hathaway after he's gone. This is not just family matters. Berkshire Hathaway investors have wanted to know who's going to be calling the shots. I mean, Warren Buffett's 94 years old.

Starting point is 00:02:42 Well, now we know. Vice Chairman Greg Abel will take over after Warren Buffett. Greg Abel is going to make the final calls on all investment decisions at Berkshire Hathaway once Warren Buffett has gone. And I mean, Greg's got big shoes to fill here. Oh, and the last thing, Warren Buffett truly not like us. Berkshire Hathaway's cash pile hit $182 billion as of March 31st. And Warren Buffett said that it's fair to assume that the cash stockpile will be over

Starting point is 00:03:06 $200 billion at the end of Q2. Apparently, he can't find any good way to use this cash. That's kind of nerve-wracking if you're an investor. If Warren Buffett doesn't think that investing that cash in the stock market is a good use for it. Obviously, Warren Buffett makes mistakes too. Just look at his investment in Paramount. But yeah, just sitting on $200 billion in cash.

Starting point is 00:03:26 Very interesting. By the way, if you guys want a good cry this morning, go look at some videos of Warren Buffett talking about Charlie Munger. I mean, onions, man. It was onions. All right, let's shift gears and talk about Tyson Foods. The largest meat company in the U.S. just reported earnings this morning and topped quarterly profit estimates. The company is seeing its cost-cutting strategy pay off as it shuts down six chicken plants and trims its workforce. Now, while the production reduction has helped profits, the shutdowns have weighed on sales. Chicken sales were down about eight. percent and volumes dropped by 6.1 percent. But volumes in the beef segment, which is Tyson's largest unit, grew for the first time in five quarters. And shares of Tyson foods are on the rise this morning. So I guess we did talk about beef a little bit on the show. Let's talk about some stocks making moves today. Starting with a winner, Paramount Global shares are up more than 4% this morning. After the entertainment giant opened up negotiations to sell itself to Sony and the private equity firm Apollo. This is per the New York Times. Now Paramount over the last few weeks has been talking to Skydance Media, the company behind Top Gun Maverick. They had an exclusive

Starting point is 00:04:30 deal window to get a deal done, but that window closed last week with no solid deal in place. So now Sony and Apollo have a chance to make an offer to buy the company. Sony and Apollo previously offered Paramount $26 billion in all cash to close the deal. Paramount's board of directors isn't finished with Skydance. They're open to hearing other bids from the company, meaning they want more money. Now, Skydance has been getting a lot of backing from some big time names. Like James Cameron, the director of Titanic and Avatar, you might have heard of him. And also R.E. Emanuel, who is an influential talent agent and executive, emphasized that Skydance Media was the right choice to buy Paramount.

Starting point is 00:05:06 In fact, James Cameron went as far to say that if Skydance CEO David Ellison gets to run Paramount creatively, it would be a huge boom for the business. It's a pretty nice endorsement from Mr. Cameron there. Let's talk about a stock not doing so hot this morning. An old internet favorite GameStop shares are down more than 7% this morning. GameStop has been acting kind of crazy these past couple trading days. GameStop closed last Friday's trading session up more than 29% for no real reason, according to MarketWatch. It was also GameStop's best performing trading day of the year so far on a percentage basis. So I don't know,

Starting point is 00:05:40 is the GameStop meme making a comeback here? I guess we'll see. Something to keep an eye on. Let's wrap the show with a fun fact. Today's fun fact is about Japan. Japan had a record number of tourists visit the country in March. 3.1 million visitors. And the number of U.S. visitors is up 50%. And a big reason for that could be the weak Japanese yen. The yen's value has dropped to record lows,

Starting point is 00:06:05 especially against the U.S. dollar. So that's made flights and goods in Japan cheaper for U.S. visitors. And airlines are starting to cash in on the demand as well. United Airlines and American Airlines are adding more direct routes to Tokyo. If you've ever wanted to go to Japan, this year might be the best time to go.

Starting point is 00:06:19 Now, the weaker yen is hurting Japanese travelers. Outbound Japanese travel was down 37% compared to 2019 because of the lower buying power from the yen. So that's one great example of how a currency's value can have an impact on a country's local economy. By the way, don't be surprised if I'm recording this podcast from somewhere in Japan sometime this year. It could happen. Prices are just too good. All right. Well, that's the rundown for today.

Starting point is 00:06:42 I'm excited for another action pack. We've got a ton of companies reporting earnings. I'm looking forward to that. We're going to be recapping all of it here on the rundown every day this week. Make sure you guys are tuning in. and if you guys enjoy listening to the show, please consider giving us a five-star rating on Apple and Spotify. And if you're listening to this on Apple, consider writing us a review. The engagement really does help the show. Thank you guys again for listening. Shout out to Mike and Connor for all the work behind the scenes.

Starting point is 00:07:04 We'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests. You should not take any mention of a publicly traded security as recommendation to buy, sell or hold that security. Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com disclosures. In partnership with Zaidid Mani.

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The Rundown - Warren Buffett Stays Loyal to Apple, Tyson Foods Beats Profit Estimates

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