Stock Analysis | Berkshire Hathaway B Outlook - Mixed Signals as Technical and Analyst Views Diverge

Market Snapshot: Price Falls, But Model Scores Suggest Divergence

Berkshire Hathaway (BRK.B) has seen its share price fall by -4.67% recently, despite the market’s mixed signals and a relatively strong internal fundamental score of 8.48 (on a 0-10 scale). However, technical indicators are signaling weakness, with a technical score of 3.57, suggesting a cautionary stance.

News Highlights: Institutional Moves and Financial Tech Growth

• Monetta Financial Services Inc. invests in Snowflake (SNOW): In early August, Monetta added 4,500 shares of Snowflake, valued at roughly $658,000. This highlights growing institutional confidence in cloud-based financial services and tech-driven fintech companies, a sector gaining momentum globally.
• Jio Financial Services adopts Agentic AI: Jio Financial announced plans to integrate advanced AI for customer experience and fraud detection, aligning with global trends toward tech-driven financial services. This signals a broader shift in the industry toward digital transformation.
• Wix Launches Financial Services for Small Businesses: Wix rolled out Wix Checking and Wix Capital to help small businesses manage cash flow and access growth capital. This move reflects the increasing role of tech platforms in financial services, potentially benefiting tech and fintech sectors more than traditional financial institutions like Berkshire Hathaway.

Analyst Views & Fundamentals: Strong Buy Ratings Clashed with Price Action

The recent analyst consensus is optimistic. The simple average rating is at 5.00 (on a 0-10 scale), while the performance-weighted rating is slightly higher at 4.86. Both scores are based on the historical performance of the single active analyst, Brian Meredith of UBS, who has issued two Strong Buy ratings in the past 20 days. Despite this bullish analyst sentiment, the stock has been in a downward price trend, highlighting a potential misalignment between expectations and reality.

Key Fundamental Metrics and Model Scores:

• Net cash flow from operating activities (YoY growth rate): -13.16% — internal diagnostic score of 8.48 (strong performance in operating cash flow remains a key positive).
• Net profit margin: -512.61% — score of 1.06 (suggesting significant margin compression).
• Days sales outstanding: 96.11 — score of 2.00 (relatively efficient, but not outstanding).
• Income tax / Total profit: 13.92% — score of 1.73 (high tax burden is a concern).
• Basic earnings per share (YoY growth): -60.58% — score of 0.00 (sharp earnings contraction).

Money-Flow Trends: Institutional Caution, Mixed Retail Activity

The fund-flow patterns for BRK.B reveal a negative overall trend, particularly among institutional investors. The block inflow ratio stands at 46.44%, indicating that large investors are cautious. In contrast, retail investors have shown a more positive tilt, with a small inflow ratio of 53.20%, though this is not enough to offset the larger outflows. The overall fund-flow score of 7.73 (good) suggests that despite the price decline, there is still some underlying confidence in the stock, particularly at the retail level.

Key Technical Signals: Bearish Momentum with Some Confusion

Berkshire Hathaway B is showing mixed technical signals as of August 9, 2025, with bearish indicators outweighing bullish ones. Of six indicators analyzed, four are bearish and one is bullish, with a technical score of 3.57 and a clear “overall trend” of ‘Technical weakness, avoid’.

Recent Chart Patterns:

• August 4: WR Oversold, MACD Death Cross, RSI Oversold — this combination suggests a strong reversal could be on the horizon.
• August 7: WR Oversold, Bearish Engulfing — further bearish confirmation.
• August 1: WR Oversold — another sign of potential oversold conditions.

Indicator Scores (Internal Diagnostic Scores 0-10):

• MACD Death Cross: 8.13 — rare but strong bullish signal.
• Inverted Hammer: 1.00 — very weak, bearish signal.
• RSI Oversold: 2.29 — suggests possible reversal but not strong enough to flip trend.
• WR Oversold: 2.58 — similar to RSI, weak bearish signal.
• Bearish Engulfing: 4.33 — moderate bearish confirmation.

Despite the one strong bullish signal, the overall momentum is bearish, with most signals pointing to potential downside risk. Investors should watch for a reversal before considering entry.

Conclusion: Watch for Technical Reversals and Earnings Cues

Berkshire Hathaway B is at a crossroads: fundamentals remain strong (8.48), but technical indicators are weak (3.57) and institutional money flows are negative. While analysts remain bullish, the stock has failed to follow through on that optimism. Consider waiting for a technical reversal — especially if the MACD Death Cross continues to hold — and keep an eye on upcoming earnings reports for more clarity on the company's operational health.