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Warren Buffett Berkshire Hathaway Earnings
Buffett: still rolling (Kevin Dietsch/Getty Images)

Berkshire Hathaway dips after lackluster Q2 results, $3.8 billion hit on Kraft Heinz stake

Both operating earnings and revenues fell year on year, and Berkshire didn’t buy back any stock for the fourth consecutive quarter.

Matt Phillips, Luke Kawa

Berkshire Hathaway, the company built up by investing icon Warren Buffett over the past six decades, reported mediocre to underwhelming Q2 results Saturday, punctuated by a big write-down of a company that it’s far and away the single largest shareholder in.

Shares are down nearly 1% in premarket trading.

The insurance, investment, and commercial conglomerate reported:

  • Operating earnings of $11.2 billion, down 3.8% from $11.6 billion reported in Q2 2024, driven by softness in its insurance business. However, that was still above the $10.74 billion average estimate from the two analysts polled by Bloomberg.

  • Total revenues of $92.515 billion, down 1.2% from $93.653 billion reported during the prior year period and well below the analysts’ average estimate for $95.135 billion.

The big headline from this release: Berkshire is (finally) marking the carrying value of its massive stake in ketchup maker Kraft Heinz to be in line with its market value, prompting a $3.8 billion hit to earnings. Berkshire owned 27.4% of Kraft Heinz as of June 30.

Edward Jones analyst Kyle Sanders suggested this write-down could be a prelude to the conglomerate reducing or completely exiting its position in the company going forward.

While seemingly every other US company is attempting to offer some insight on how changes to trade policy affect its outlook, Berkshire isn’t even bothering.

“Changes in macroeconomic conditions and geopolitical events, including changes in international trade policies and tariffs, may negatively affect our operating results and the values of our investments in equity securities and of our operating businesses,” per the earnings report. “We are currently unable to reliably predict the nature, timing or magnitude of the potential economic consequences of any such changes or the impacts on our Consolidated Financial Statements.”

Berkshire shares have badly lagged the market since the man known as the Oracle of Omaha announced in early May that he would cede the CEO job at Berkshire to top lieutenant Greg Abel on January 1. (Buffett will stay on as chairman.)

Berkshire is down roughly 12% since then, while the S&P 500 is up about 10%.

The Buffett-led company also refrained from any share repurchases for the fourth consecutive quarter, despite this bout of underperformance.

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Chip rout drags down stocks as investors rotate out of tech

Information technology and energy were today’s losers as oil prices slid on reports that Strait of Hormuz shipping traffic is normalizing.

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Airlines, cruise lines rise as oil prices ease

Travel stocks are climbing on Tuesday, with West Texas Intermediate crude futures down more than 3.4% as of 3 p.m. ET, largely on traders’ hopes for an improving situation with Iran.

The New York Times reported that American officials think Iran could agree to a 15-year suspension of uranium enrichment. Crude futures had spiked briefly on Tuesday following President Trump’s Truth Social post that the US must respond to the downing of a US Apache helicopter by Iran, but prices remain lower on the day, boosting US travel stocks.

Shares of Delta Air Lines, United Airlines, American Airlines, Southwest Airlines, and JetBlue were all up at least 4% an hour before market close. Cruise lines Carnival, Norwegian, and Royal Caribbean were similarly up. Travel companies have been rocked by higher fuel costs in the months since the war in Iran began.

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Paige Oamek

DraftKings soars after reporting $1.3 billion in trading volume on its prediction markets

It’s soccer summer, Knicks in five, baseball’s back, and everyone watching the game is looking down at their phone. After launching a prediction market platform in December, DraftKings is ready to ride this wave. And on Tuesday, the traditional sports betting company announced it actually had something to show for it.

Consumer trading volume in the month of May grew 24% to $1.3 billion and total trading volume increased 34% to $3.1 billion, according to a DraftKings SEC filing. Investors responded by lifting the stock 10% on Tuesday.

FanDuel parent company Flutter Entertainment was also trading higher.

Both sports betting companies reported upbeat earnings last quarter, besting Wall Street expectations, and have gained over the past month following declines of 49% and 23% since January, respectively.

DraftKings and FanDuel have both struggled as Kalshi and Polymarket encroach on their customers. Sports betting has been key to the growth of prediction markets, making up 39% of total trading volume on Kalshi and 80% on Polymarket since July 2024.

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Max Knoblauch

Rivian dips on R2 launch day as shoppers point out “out of control” lease prices

Rivian is sinking on Tuesday, the launch day of its highly anticipated R2 SUV.

The EV maker’s shares are down more than 7% on Tuesday afternoon, erasing a chunk of the gains they raked in during their recent 10-day winning streak.

Aside from a broad market sell-off and some selling the R2 launch news, online chatter also reveals some customer disappointment with lease prices for the new model. The performance trim lease prices are listed at $829 a month on Rivian’s site, close to the monthly price of the more expensive R1S. A Reddit post referred to those rates as “out of control” and “a huge disappointment.”

The R2 was announced as a lower-cost $45,000 SUV but is launching at higher-trim levels priced closer to $60,000. Rivian’s larger R1S starts at around $77,000. Rivian has implied annual R2 deliveries of between 20,000 and 25,000 units this year.

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Chip stocks and high-flying tech shares plunge, sending the Nasdaq, S&P 500 lower

Chipmakers, artificial intelligence giants, and other highly valued tech stocks plunged Tuesday, dragging major US stock indexes deep into the red as the recent chip and AI complex comeback abruptly fizzled.

The Invesco QQQ Trust, which tracks the Nasdaq 100, is off around 3% on the day, and S&P 500 is down almost 2%.

The iShares Semiconductor ETF is also sinking, effectively giving up all the gains it saw yesterday as it surged to one of its best days of the year.

Wall Street initially opened in positive territory, but enthusiasm rapidly deteriorated midday as investors seemed to aggressively lock in profits on volatile, high-growth semiconductor stocks that, until recently, had been shooting upward.

This pivot follows a brutal trading day last Friday when momentum stocks collided with a rosy jobs report, profit-taking, and perhaps some very belated pessimism triggered by disappointing guidance from Broadcom, sending a host of previously bid-up names falling.

Many of those same shares are tumbling on Tuesday:

  • Micron completely flipped its intraday trajectory, plummeting over 9% at one point after gaining in early-morning trading. The memory provider has still more than tripled its valuation since the beginning of 2026. AMD shares also plummeted.

  • Marvell Technology jumped nearly 10% yesterday and advanced further soon after the opening bell, but reversed course midday and was down double digits, on pace for its second-worst day this year. The company was recently selected to join the S&P 500 Index effective June 22.

  • Intel is sinking after jumping in yesterday’s session on a report that Google and Nvidia are considering turning to the chipmaker as a backup supplier to TSMC.

  • Apple’s shares are selling down following the kickoff of its Worldwide Developers Conference yesterday, where it showcased the new AI-powered version of Siri and the trust and safety features of iOS 27.

The tech-driven slide overshadowed a positive macroeconomic buffer from the energy sector, with oil prices sliding. The relief in crude costs came after ongoing negotiations signaled that shipping traffic through the crucial Strait of Hormuz is normalizing, according to Reuters, though this drop was tempered by a threat from President Trump to retaliate against Iran for an attack on a US helicopter in the strait.

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