Investors continued to shun consumer packaged goods. Berkshire (BRK-B) registered to sell its entire 27.5% stake in Kraft Heinz (KHC). On Wednesday, KHC stock fell by around 6%.
Berkshire’s new CEO, Greg Abel, wants a fresh start. Kraft Heinz faces deteriorating fundamentals. Higher input costs for hot dog, macaroni-and-cheese, and other consumer goods will hurt profit margins. Since owning the stock after the 2015 merger between Kraft and Heinz, Berkshire lost 70% of its investment.
Applovin (APP) continued its descent, losing another 6% yesterday. Apart from a bearish report on APP stock from CapitalWatch, the downtrend is unusual. Shorts hold a 5.1% short interest.
Oracle (ORCL) is trending lower. The leveraged balance sheet is an ongoing concern. If the AI bubble deflates, Oracle’s debt yields will rise by even more.
Microsoft (MSFT) is also on a downtrend. “Microslop” is trending on the video-sharing site YouTube. Vloggers are criticizing the firm’s bloated operating system, Windows 11. In addition, the proliferation of “slop” AI will undermine the value that chatbots aim to provide to corporations.
Stocks that soared in the last day included Intel (INTC). The company reports quarterly results today.
Storage supplier Sandisk (SNDK) added another 10.5% on Wednesday for a 28.4% weekly return.
The share price of Moderna (MRNA) is approaching a double. Short-sellers hold a 19.1% short float.
