Berkshire Hathaway Waves Goodbye to Airline Sector

The company also reported an earnings and revenue miss

Deputy Editor
May 4, 2020 at 10:49 AM
facebook twitter linkedin

Berkshire Hathaway Inc. (NYSE:BRK.A) sent airline stocks tumbling after CEO Warren Buffet announced that the conglomerate sold its entire stakes in the four largest U.S. airlines -- Delta Air Lines (DAL), American Airlines (AAL), Southwest Airlines (LUV), and United Airlines (UAL). The company also reported a first-quarter earnings and revenue miss, with its reported profits of $3,617.38 per share and revenue of $61.27 billion both lower than analyst estimates. At last check, BRK.A is down 2.4% to trade at $267,468. 

On the charts, BRK.A has been pushing up against pressure at the $290,000 region, which coincides with the stock's 50-day moving average. The stock is now eyeing its third consecutive daily loss. Currently hovering just below its month-over-month breakeven, the equity is down 21.5% year-to-date. 

Amid the news, BRK.A earned a price target hike from KBW to $325,000 from $310,000, and one price target cut by UBS to $350,000 from $358,000. Of two analysts in coverage, one sports a "buy" and the other a "hold."


Now is the time to join our thriving community of Event Traders who consistently profit from every earnings season. With this discounted subscription opportunity, you'll stay ahead of the curve and seize opportunities others miss. Do not let Q3 earnings season pass you by – subscribe now and supercharge your portfolio with expert insights that turn market reactions into profit-generating opportunities!! Don't waste another second... join us right now before the next trade targeting +200% is released!