Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

3 Stocks To Watch This Week: Berkshire Hathaway, Baidu, Coinbase

By Investing.com (Haris Anwar/Investing.com)Stock MarketsAug 07, 2022 11:36
uk.investing.com/analysis/3-stocks-to-watch-this-week-berkshire-hathaway-baidu-coinbase-200530527
3 Stocks To Watch This Week: Berkshire Hathaway, Baidu, Coinbase
By Investing.com (Haris Anwar/Investing.com)   |  Aug 07, 2022 11:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
COIN
+0.65%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
-1.03%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BIDU
+0.61%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BRKb
-1.29%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-0.60%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BERK
+3.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • Berkshire Hathaway earnings showed Warren Buffett was a net buyer in the past quarter
  • The Chinese internet provider Baidu is scheduled to report its earnings on Monday
  • Coinbase is likely to post a quarterly loss after crypto market crash

After seeing some encouraging signs from U.S. earning reports during the past couple of weeks, investors are now turning their focus back to the economy, where risks have increased of another jumbo interest-rate hike from the Federal Reserve.

Corporate earnings results have been strong, and analyst estimates suggest profits from S&P 500 companies can grow in the second half, as well. These expectations have so far supported a strong market rebound that started in mid-June.

But various economic reports over the past week have shown that the economy remains on solid footing with little sign of weakening. Job numbers on Friday, for example, showed U.S. employers added more jobs in July than estimated and the unemployment rate dropped to a five-decade low of 3.5%.

Amid this uncertain environment for stocks, below we have short-listed three stocks that investors should keep an eye on this week:

1. Berkshire Hathaway

Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) (NYSE:BRKb) released its Q2 2022 earnings on Saturday. The results showed that the conglomerate’s holdings - which include stakes in insurance, transportation, and utilities companies, among others - posted strong operating profits that rose 38% to $9.283 billion from the same period a year earlier.

Earnings also showed that the investment company followed Buffett’s investment philosophy by snapping up shares of companies that offer value during market downturns. Berkshire was a net buyer of equities in the quarter, reporting $3.8 billion in purchases, according to the quarterly results.

Berkshire Hathaway Earnings History
Berkshire Hathaway Earnings History

Source: Investing.com

Despite the strong operating performance, spiraling inflation, rate hikes, and a market downturn took a chunk out of the value of Berkshire's portfolio, dragging down the company's own book value. Berkshire said it swung to a loss of $43.8 billion in the second quarter, with the company losing $53 billion on its investment portfolio amid the market rout.

Class A shares fell more than 22% in the second quarter, and the stock is now down nearly 20% from an all-time high reached March 28.

2. Baidu

Chinese internet provider Baidu (NASDAQ:BIDU) is scheduled to report its second-quarter earnings report on Monday, Aug. 8, before the market open. Analysts expect $10.49 a share profit on sales of $29.4 billion.

Baidu Weekly Chart
Baidu Weekly Chart

Source: Investing.com

Baidu is trying to diversify its revenue base from its core online marketing business into areas such as self-driving systems, cloud computing, and chips. Baidu’s Netflix (NASDAQ:NFLX)-style streaming affiliate, iQiyi (NASDAQ:IQ), has posted its first quarterly net income - for the January-to-March period - since its 2018 listing.

Still, China’s weakening economy following its COVID-19 restrictions, and a government crackdown on tech companies, have kept investors on the sidelines over the past year.

Baidu’s U.S.-listed stock closed on Friday at $137.82 after weakening 17% over the past year.

3. Coinbase

Coinbase (NASDAQ:COIN), the U.S.’s largest cryptocurrency trading exchange, will release its second-quarter earnings on Tuesday, Aug. 9, after the market close. Analysts, on average, expect the company to report $2.44 a share loss on sales of $879.69 million.

Since its initial public offering in April last year, Coinbase has been a very volatile stock as the cryptocurrency markets have undergone a major correction. Coinbase’s revenue is built almost entirely on the performance of Bitcoin and Ethereum, which have each drastically fallen from their respective peaks.

Coinbase Fair Value, per InvestingPro+
Coinbase Fair Value, per InvestingPro+

Source: InvestingPro+

Coinbase is also facing a U.S. probe into whether it improperly let Americans trade digital assets that should have been registered as securities, Bloomberg reported last month.

Coinbase stock closed on Friday at $93.05, after losing more than 60% of its value this year as investors shunned riskier assets amid rising interest rates and inflation. Bitcoin was recently trading above $23,000, a sharp reversal from last year, when it topped $67,000.

Disclosure: The writer doesn’t own shares of companies mentioned in this report.

3 Stocks To Watch This Week: Berkshire Hathaway, Baidu, Coinbase
 

Related Articles

3 Stocks To Watch This Week: Berkshire Hathaway, Baidu, Coinbase

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Roy Tanvir
Roy Tanvir Aug 07, 2022 14:02
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email