Berkshire Hathaway Shares Slump 1.59% as 2.67B Volume Ranks 27th on Weak Earnings and Kraft Heinz Write-Downs Despite 344B Cash Pile and Analysts Target 539.25 Price Upside

On August 7, 2025, Berkshire Hathaway (BRK.B) shares fell 1.59%, with a trading volume of $2.67 billion, ranking 27th in the market. The decline followed a mixed earnings report for Q2 2025, where operating earnings dropped 3.8% year-over-year to $11.2 billion. Weakness in insurance underwriting and a $3.8 billion write-down on its Kraft Heinz stake contributed to the sell-off. Meanwhile, cash reserves remained near a record $344.1 billion, and the company continued its 11th consecutive quarter as a net seller of stocks.

Despite declines in insurance underwriting income and the “Other” segment, sectors like railroads, energy, and retail showed resilience. BNSF’s operating income rose 19.5% to $1.5 billion, while energy profits grew 7.2%. However, analysts remain cautious, projecting a 6.7% decline in full-year EPS for 2025. The stock’s valuation, trading at 22.6 times forward earnings, remains elevated despite recent underperformance against broader market indices.

Warren Buffett’s strategy of avoiding stock repurchases and selling equities has raised investor concerns. With $344 billion in cash, Berkshire has refrained from repurchases since May 2024, signaling skepticism about current stock valuations. Analysts maintain a “Moderate Buy” rating, with a $539.25 average price target (16% upside) and a high-end target of $597 (29% upside). The focus remains on Berkshire’s diversified operations and cash position as potential long-term advantages amid economic uncertainties.

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