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Elon Musk says Warren Buffett should take a stake in Tesla (NASDAQ:TSLA).
Elon Musk says Berkshire should take Tesla stake after trimming Apple. (0:16) Robinhood Crypto gets SEC Wells Notice. (1:41) iPhone takes top 4 spots in Q1 smartphone sales. (2:18)
In a post on Monday on X (formerly Twitter), Musk said Buffet “should take a position in Tesla. It’s an obvious move.”
The reply came in response to a post calling for Buffett to buy TSLA after Berkshire Hathaway (NYSE:BRK.A) (BRK.B) disclosed a reduced stake in Apple (AAPL).
At the Berkshire Hathaway annual meeting on Saturday, Buffett said if Tesla manages to significantly reduce car accidents through automation technology, that would reduce costs and prices. Ajit Jain, vice chairman of Berkshire’s insurance operations, said Tesla has yet to be successful with this automation effort.
Buffett said Berkshire will see “modest” growth in operating earnings in 2024 vs. 2023.
In today’s trading
Growth stocks are leading gains in the major averages, with the Nasdaq (COMP.IND) up +0.75%, ahead of the S&P 500 (SP500). Energy (XLE) and Industrials (XLI) are the leading sectors, with Consumer Staples (XLP) bringing up the rear.
Among active stocks
Steward Health Care System, the largest U.S. physician-led hospital operator, said it has filed for Chapter 11 bankruptcy, a move that was widely expected.
The company is finalizing the terms of debtor-in-possession financing from Medical Properties Trust (MPW) for initial funding of $75 million and up to an additional $225 million contingent on certain conditions. Steward is the largest tenant of MPW. Shares of MPW are down more than 5%.
Robinhood Markets (HOOD) slid after it disclosed its crypto arm received a “Wells notice” from the staff of the SEC. The SEC staff told Robinhood Crypto that it made a “preliminary determination” to recommend that the SEC file an enforcement action for securities violations.
And Tyson Foods (TSN) fell sharply as the company warned on inflation denting demand for ready-to-eat and branded products.
Melanie Boulden, who overseas Tyson’s Prepared Foods business, said in a conference call, “The consumer is under pressure, especially the lower-income households,” and inflation has contributed to a “more cautious, price-sensitive consumer,” according to Bloomberg.
In other news of note
Apple’s (AAPL) iconic iPhone dominated the smartphone market during the first quarter of 2024, according to data by Counterpoint Research.
Despite concerns of iPhone sales declining in China, iPhones made up the top 4 spots on Counterpoint Research’s Global Monthly Handset Model Sales Tracker.
The iPhone 15 Pro Max led all smartphone sales for the first quarter, capturing 4.4% of the global market. It was followed by the iPhone 15, the iPhone 15 Pro, and the iPhone 14 to round out the top four. It marked the first time a Pro Max model ranked No. 1 during a non-seasonal quarter for Apple.
Samsung’s (OTCPK:SSNLF) Galaxy S24 Ultra ranked No. 5 during the quarter, followed by the Galaxy A15 5G, the Galaxy A54, and the iPhone 15 Plus. The ninth and tenth spots were held by the Galaxy S24 and Galaxy A34, respectively.
And in the Wall Street Research Corner
The Magnificent 7 contributes about one-fifth of the earnings growth to the S&P 500, and analysts are ramping up expectations, according to Citi.
Those stocks—Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA)—have seen Q1 earnings estimates rise more than 29%. (Nvidia has yet to report Q1.)
But looking at full-year 2024, Citi has “been most focused on the underlying trajectory of the ‘other 493,'” strategist Scott Chronert wrote in a note.
“For this cohort, full-year earnings growth has become slightly less negative,” Chronert said. “That is, the -6.8% earnings decline was at -7% headed into Q1. So, again, the message here is that a good positive surprise quarter is not translating directly into higher full-year growth expectations, but we are seeing stabilization.”