Week’s Market Performance

Market News

Buffett Passes the Torch: An Era Ends at Berkshire Hathaway

Warren Buffett, the legendary investor often referred to as the "Oracle of Omaha," has announced his decision to step down as CEO of Berkshire Hathaway after an extraordinary 60-year tenure. In an interview with The Wall Street Journal, the 94-year-old cited the physical effects of aging as the primary reason for his decision, noting issues such as balance problems, occasional memory lapses, and diminished vision. Buffett, who will turn 95 in August, conveyed that although these physical changes are irreversible, he remains mentally sharp and capable of making investment decisions. Under his leadership, Berkshire Hathaway transformed from a struggling New England textile company into a powerhouse conglomerate with a market capitalization nearing $1.2 trillion.

Berkshire's board has appointed Greg Abel, currently vice chairman of non-insurance operations, to succeed Buffett as president and CEO starting January 1, 2026, while Buffett will continue as chairman. This transition marks the end of an era for Berkshire, yet Buffett reassured stakeholders of his continued involvement, particularly during market upheavals. Known for his keen ability to capitalize on market downturns, Buffett stated, "I will be useful here if there's a panic in the market because I don't get fearful when things go down in price." Despite his departure from the CEO role, his investment philosophy and approach to market volatility remain unwavering. The announcement comes as Berkshire shares approach record highs, underscoring Buffett's enduring legacy and the company's robust position in the financial landscape.

Topgolf Callaway's Drive Falters Amid Competitive Hazards

Shares of Topgolf Callaway Brands Corp. experienced a decline in after-hours trading following the company's announcement of anticipated weakened sales at its Topgolf driving-range chain and increased competition in the golf equipment market. This development was revealed on Monday, May 12, 2025, as the company reported its first-quarter earnings. Despite these concerns, the quarter was marked by an unexpected adjusted profit, signaling some resilience in underlying business operations. Topgolf Callaway, known for its innovative entertainment venues and heritage in golf equipment, is facing headwinds as consumer spending patterns shift and competitors intensify their market strategies.

Analysts pointed out that the growth trajectory for Topgolf venues, which had been a significant revenue driver pre-pandemic, is now encountering saturation in key urban markets. Additionally, the golf equipment sector is witnessing heightened competition from emerging brands that are leveraging technology and digital marketing to capture younger golf enthusiasts. These factors are prompting the company to recalibrate its business model, focusing more on brand differentiation and customer engagement. Industry experts suggest that while the current challenges might weigh on short-term performance, strategic initiatives could solidify long-term positioning. Investors will be closely monitoring future earnings reports for signs of adaptation and recovery in these core segments., experts caution that the underlying trade tensions have not been fully resolved.

High Earners Dodge Tax Bullet as Proposed Hike Fizzles in House

A proposed tax increase targeting multimillionaires, aiming to raise the top income-tax rate to 39.6%, has been excluded from a new tax bill currently being assembled in the U.S. House of Representatives. This decision offers temporary relief to high-income individuals who were previously in the crosshairs of potential tax hikes under the Biden administration, following President Donald Trump's earlier propositions. The current top federal income tax rate remains at 37%, providing a reprieve for wealthy taxpayers. The outcome reflects significant lobbying efforts and political negotiation, as lawmakers grapple with balancing fiscal policy and economic incentives.

The exclusion of the tax hike aligns with broader legislative strategies to support economic growth and maintain competitive tax rates amidst ongoing recovery efforts. Critics argue that not increasing taxes on the wealthiest Americans could exacerbate income inequality and hinder funding for essential public services. Proponents of the decision contend it could encourage investment and economic stability. As the House continues to refine the bill, the focus shifts to alternative revenue-generating measures and potential spending cuts to address budgetary concerns. The move signals a complex interplay between political priorities and economic realities, underscoring the challenges in achieving tax reform consensus. The final version of the bill will likely see further debate and possible amendments as it makes its way through Congress.

CoreWeave Rockets in Market Debut with AI-Fueled Revenue Surge

CoreWeave, an artificial intelligence infrastructure provider, stunned the market with its first earnings release since going public, posting a remarkable 420% revenue increase for the quarter ending March 31. This explosive growth, driven by increased demand for AI infrastructure, pushed shares up in extended trading. However, the company reported a widening net loss of $314.6 million, attributed in part to $177 million in stock-based compensation costs linked to its initial public offering. Despite this, CoreWeave's strategic partnerships, particularly its five-year deal with OpenAI worth up to $11.9 billion, highlight its critical role in the AI sector. This partnership builds upon CoreWeave's existing reliance on Microsoft, which accounted for 62% of its 2024 revenue, underscoring the company's strength in securing high-profile clients.

CoreWeave's IPO marked the largest U.S. venture-backed tech IPO since 2021, with shares debuting on Nasdaq at $39, slightly below expectations. Nvidia, a key customer and investor, anchored the IPO at $40, contributing to the company's strategic positioning in the AI infrastructure market. Despite the impressive revenue figures, some analysts express caution due to potential long-term uncertainties in AI supply and demand, as well as broader economic concerns. Wells Fargo analysts recommend holding the stock, suggesting that these factors might keep shares range-bound for the time being. Executives are set to discuss these results and future guidance in an upcoming conference call, which investors will be watching closely for insights into the company's strategic direction.

Boeing's Soaring Deal with Qatar Airways: A $96 Billion Bet on the Skies

In a landmark agreement, Boeing and Qatar Airways announced a massive deal for up to 210 jets, marking Boeing's largest-ever order for widebody aircraft. The deal, unveiled during President Donald Trump's visit to Qatar, includes 130 Boeing 787 Dreamliners and 30 Boeing 777-9s, with options for an additional 50 planes. This order represents the biggest in Qatar Airways' history and is valued at an estimated $96 billion, according to the White House. Additionally, Qatar Airways has partnered with GE Aerospace to purchase over 400 engines, constituting the largest engine order in GE Aerospace's history. The deal is set to significantly bolster Boeing's production, with the White House touting support for 154,000 U.S. jobs annually, although Boeing and Qatar Airways estimate 400,000 jobs will be created overall.

This development comes as a major boon for Boeing, which has faced profitability challenges since 2018, exacerbated by safety concerns, manufacturing defects, and trade tensions with China. Boeing CEO Kelly Ortberg emphasized that this agreement is pivotal for the company, helping address a backlog exceeding $500 billion. Qatar Airways CEO Badr Mohammed Al-Meer highlighted the strategic importance of this acquisition in maintaining the airline's position as a leader in global aviation efficiency and connectivity. The planes are slated for assembly at Boeing's Charleston facility, a move praised by Sen. Lindsey Graham as transformative for South Carolina. However, the deal has also sparked political controversy, with President Trump's acceptance of a luxury 747 jet gift from Qatar as the new Air Force One facing criticism. This historic transaction not only reshapes the future of both companies but also underscores the geopolitical intricacies intertwined with global business ventures.

Editor’s Chart of the Day

Major Earnings

TJX Companies, Inc. (TJX) - May 21, Before Market Open

• Financial Trends: TJX has shown strong performance with Q4 comparable store sales up 5%, driven by increased customer transactions and achieving a pretax profit margin of 11.6%.

• Strategic Initiatives: The company plans to open approximately 130 new stores in fiscal 2026 as part of its ambitious goal to reach 7,000 stores worldwide, including international expansion through joint ventures.

• Key Metrics: Comparable store sales growth, customer transaction increases, and pretax profit margins are the critical indicators for evaluating TJX’s performance.

• Progress: TJX reached its 5,000th store milestone in fiscal 2025 and returned $4.1 billion to shareholders through share repurchases and dividends.

• Focus Areas: Watch for updates on store expansion progress, the impact of tariffs on merchandise costs, and the company’s fiscal 2026 guidance, particularly regarding comparable store sales growth projections of 2-3%.

• Risks Potential: tariffs on Chinese imports, currency fluctuations, and competition in the off-price retail segment pose significant risks to TJX’s performance.

• Concerns: TJX’s fiscal 2026 earnings guidance of $4.34 to $4.43 per share falls below analysts’ estimates of $4.58, potentially concerning investors.

• Market Trends: Consumer preference for lower-priced options amid inflation and economic uncertainty benefits TJX, while department store closures create opportunities for market share expansion.

Ross Stores, Inc. (ROST) - May 22, After Market Close

• Financial Trends: Ross Stores achieved $21.1 billion in fiscal 2025 revenue, a 3.7% increase from FY2024, with net income growing 12% to $2.09 billion.

• Strategic Initiatives: The company is executing an aggressive expansion plan to open approximately 90 new locations in fiscal year 2025, supported by $855 million in capital expenditures.

• Key Metrics: Comparable store sales growth, earnings per share, profit margins, and return on equity are the key performance indicators for Ross Stores.

• Progress: Ross maintained strong financial health with earnings per share reaching $6.36 in FY2025 and projects a high return on equity of 34.3% within three years.

• Focus Areas: Pay attention to Q1 2025 performance with forecasted earnings of $1.43 per share, anticipated comparable store sales decline of 0.8%, and updates on expansion plans.

• Risks: Ross faces challenges from tariffs, declining consumer confidence, and increased competition, with forecast earnings growth below the US market average.

• Concerns: Analysts project a 2.1% year-over-year decline in quarterly earnings and a 0.8% comparable store sales decline for Q1 2025, suggesting potential growth challenges.

• Market Trends: The off-price retail segment continues to benefit from value-seeking consumers amid economic uncertainty, with analyst consensus projecting Ross Stores’ share price could reach $160.39 by April 2026.

Workday, Inc. (WDAY) - May 22, After Market Close

• Financial Trends: Workday’s fiscal 2025 revenues reached $8.446 billion (up 16.35% year-over-year), though net income decreased 62% to $526.0 million due to higher expenses.

• Strategic Initiatives: The 2025 Spring Release introduced over 350 new features heavily focused on AI integration across HR and finance modules, including talent rediscovery, personalized onboarding, and automated accounts payable processing.

• Key Metrics: Subscription revenue growth, profit margins, cash flow metrics, customer retention rates, and AI feature adoption are the critical indicators for Workday’s performance.

• Progress: Operating cash flows increased 14.5% year-over-year to $2.461 billion, with Q4 non-GAAP operating income reaching $584 million, up from $462 million the previous year.

• Focus Areas: Monitor adoption of AI features from the Spring 2025 release, efforts to improve declining profit margins, and guidance on subscription revenue growth.

• Risks: Intensifying competition in the enterprise software market, high P/E ratio of 120.71, and underperforming return on equity of 4.0% compared to industry average of 9.9% present significant challenges.

• Concerns: Workday’s earnings per share missed analyst expectations by 7.0% in fiscal 2025, causing shares to drop 6.9% following the announcement.

• Market Trends: The enterprise software market continues shifting toward cloud-based solutions with integrated AI capabilities, though economic uncertainties could impact spending on software solutions.

Meet Evan Buenger

From a young age, Evan was fascinated by the stock market. At just 11 years old, he received a Wall Street Journal subscription for his birthday, sparking a lifelong passion for investing. Evan spent his formative years studying the strategies and philosophies of legendary investors like Paul Tudor Jones, Stanley Druckenmiller, and George Soros, absorbing their wisdom and developing his own unique approach to the markets.

As Evan's knowledge grew, he began to incorporate the time-tested, technically-based strategies of trading legends like William O'Neil and Richard Wyckoff into his own investment framework. By borrowing elements from each and rigorously testing them in real-time, Evan created a powerful conglomerate strategy that encompasses fundamentals, technicals, and macroeconomics.

Today, Evan is a professional trader and was a top contender in the 2020 US Investing Championship. His extraordinary performance, with a 141.8% return, is a testament to his studious background, well-informed approach, and unwavering dedication to his craft.

At the core of Evan's strategy is identifying stocks that benefit from sector trends and rotation. By combining fundamental analysis with a focus on relative strength and advanced technical analysis techniques, Evan is able to identify the stocks that are most likely to move higher or lower over the intermediate term.

While he keeps a close eye on macroeconomic trends, his willingness to adapt to changing market conditions, as well as his developed ability to know when to and not to act in a fast-moving market, is what sets him apart. Evan has consistently demonstrated his ability to navigate even the most challenging investment environments. His impressive track record and unique perspective make him a valuable voice in the world of finance, and he is thrilled to have the opportunity to share his insights and expertise with subscribers of the Bull and Bear Brief.

Become a paying subscriber of the Bull and Bear Brief: Stock Portfolio Recommendations Newsletter to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

• • Expert-curated stock trades delivered weekly to strategically build your wealth-generating portfolio
• • Real-time position management with timely alerts on existing holdings—ensuring you capture profits and minimize losses with precision timing
• • Monthly Q&A where we address paid subscriber questions, examine real-world scenarios, and discuss current market conditions
• • Regular reviews of both successful and unsuccessful trade recommendations, analyzing what worked, what didn't, and the lessons we can extract