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Buffett's $6.7B Bet on Chubb Ignites Stock Surge


By Bill Bullington

5/16, 10:21 EDT
AMC Entertainment Holdings, Inc.
Chubb Limited
Cisco Systems, Inc.
Dollar General Corporation
Grab Holdings Limited
Target Corporation
Walmart Inc.

Key Takeaway

  • Chubb (CB) shares surged 4.2% after a $6.7 billion investment by Berkshire Hathaway, while Cisco Systems (CSCO) fell 1.3% due to a conservative outlook.
  • Walmart (WMT) shares rose 6.9% on strong Q1 results and raised forecasts, contrasting with GameStop (GME) and AMC Entertainment (AMC), which saw declines of 14% and 6.3%.

Market Responds to Corporate Updates

The S&P 500 Index, along with other major indexes, showed modest gains in the early trading hours in New York, each climbing by 0.1%. This movement reflects the market's anticipation of the Federal Reserve's future decisions, with investors closely monitoring corporate news and earnings reports for potential impacts.

Highs and Lows Across the Board

In a notable development, Chubb (CB) shares surged 4.2% following the revelation of a $6.7 billion investment by Warren Buffett's Berkshire Hathaway, a move that has been met with analyst approval. On the flip side, Cisco Systems (CSCO) experienced a 1.3% decline, with its 2025 outlook deemed "conservative" by market analysts, indicating potential concerns over its growth trajectory.

Meme Stocks and Digital Shifts

The trading session also highlighted the volatility of meme stocks, with GameStop Corp. (GME) and AMC Entertainment Holdings Inc. (AMC) witnessing declines of 14% and 6.3%, respectively, as the fervor that previously fueled their prices appears to wane. Meanwhile, Group (GAMB) saw its shares drop by 9.8% after adjusting its revenue and Ebitda forecasts downward, signaling challenges ahead.

Retail and Tech Show Strength

Conversely, the retail sector showed resilience and optimism. Walmart (WMT) stood out with a 6.9% increase in its shares after reporting first-quarter results that exceeded expectations and raising its full-year profit and net sales growth forecasts. This positive news also buoyed shares of Target (TGT) and Dollar General (DG), which rose by 2.5% and 3.5%, respectively. In the tech and services sector, Grab Holdings (GRAB) shares climbed 2.6% after the company reported first-quarter revenue above estimates and improved its Ebitda outlook for the year. Additionally, Trupanion Inc. (TRUP) enjoyed a 15% jump in its shares following an upgrade by BofA from neutral to buy, highlighting the growing interest in pet health insurance.