Berkshire Hathaway's Bank of America stock sales have now surpassed $10 billion, oil prices surged amid Middle East conflict fears, Amazon shares fell following a Wells Fargo downgrade, FTX's $16 billion repayment plan received court approval, and Apple shares dropped as Jefferies warned of overly optimistic iPhone expectations. All this and more on the October 8 edition of World Street.
Berkshire’s Bank Sale Tops $10 Billion
Warren Buffett’s Berkshire Hathaway has now surpassed $10 billion in sales from its months-long reduction of Bank of America Corp. shares. A regulatory filing on Monday revealed this milestone after the company’s 14th round of stock disposals.
In the latest sale, Berkshire brought in $383 million over three days, selling fewer shares than in previous rounds. The filings also indicate that Buffett’s selling often slows when the stock nears $39. On Monday, the shares closed at $39.96.
Oil Jumps on War Risk
Oil prices surged over 3 percent on Monday, with Brent climbing above $80 per barrel for the first time since August. Concerns about a broader Middle East conflict spurred investors to reverse last month's bearish positions. Brent crude rose by $2.88, or 3.7 percent, closing at $80.93 per barrel, while U.S. West Texas Intermediate gained $2.76, or 3.7 percent, settling at $77.14.
Both benchmarks saw significant weekly gains, with Brent up over 8 percent and WTI more than 9 percent, following Iran's October 1 missile strike on Israel, heightening fears of potential retaliation targeting oil facilities.
Wells Fargo Downgrades Amazon
Amazon shares dropped 3 percent on Monday after Wells Fargo analysts issued a downgrade, citing concerns that growth in its cloud services won't offset challenges to profit margins.
Ken Gawrelski from Wells Fargo cut his rating on the stock from Overweight to Equal Weight and reduced the price target from $225 to $183. "Amazon has been a consistent positive revision story, but we believe factors pressure revisions in the near term," he said.
FTX Wins Court Nod for $16 Billion Payback
A court has approved FTX's bankruptcy plan, enabling the collapsed crypto exchange to repay customers using $16 billion in recovered assets. US Bankruptcy Judge John Dorsey gave the green light at a hearing in Wilmington, Delaware.
The plan includes settlements with FTX customers, creditors, US agencies, and international liquidators. These agreements prioritize paying customers first, before addressing claims from government regulators.
Jefferies Downgrades Apple
Apple Inc. shares dropped 2.3 percent on Monday, following comments from Jefferies analyst Edison Lee, who believes investor expectations for the new iPhones are too high.
Lee, who downgraded Apple to a hold from buy, highlighted the limited new features and minimal AI capabilities, stating that hopes for 5 to 10 percent growth in iPhone sales may be unrealistic. Apple's stock has surged about 34 percent since April, driven by enthusiasm over AI innovations. However, early demand for the new iPhones has been mixed.
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