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Buy 1 share, sell 1 when markets open: Berkshire Hathaway, Alibaba

Wall Street stocks closed higher on Friday, with the benchmark and blue-chip rising to new records after investor risk appetite rose higher than expected.

This week we will have another string of notable earnings reports from companies like Walt Disney (NYSE :), Coinbase Global (NASDAQ :), Palantir Technologies (NYSE :), and AMC Entertainment (NYSE :), as well as key economic data, including the latest US inflation reports which makes the coming week a busy week.

Whatever impact recent earnings releases and US CPIs have had on the market, below we highlight one stock that is likely to be in demand in the days ahead and another that could see new losses.

Remember, however, that our time frame is only for the coming week.

Stock to buy: Birkshire Hathaway

Berkshire Hathaway (NYSE :), the holding company of legendary CEO Warren Buffett, will be in focus this week as investors move on to the one released over the weekend.

Berkshire said Saturday that its second quarter operating income rose 21% to $ 6.69 billion. Revenue rose 22% year over year to $ 69.1 billion, beating expectations for revenue of $ 64.6 billion -Dollar.

Berkshire’s cash stack stood at $ 144.1 billion at the end of the second quarter, which is still near a record high despite the company’s massive share buyback program. The conglomerate bought 6.0 billion of its own shares during the reporting period. Berkshire bought a record $ 24.7 billion of its own shares last year.

In a notable development, Buffett, who turns 91 later this month, announced that Berkshire’s next CEO would be Greg Abel, a vice chairman who currently oversees Berkshire’s non-insurance businesses.

BRKb daily chart

Berkshire stock has outperformed the broader market this year, with Class A (NYSE 🙂 and Class B stocks up 24% and 23.2%, respectively. The benchmark S&P 500 has increased by 18% over the same period.

BRKb stock closed Friday’s trading session at $ 285.63, in sight of its all-time high of $ 295.08 that was set on Jan.

Inventory to dumping: Alibaba

Alibaba Group Holdings Ltd ADR (NYSE 🙂 shares are expected to suffer another challenging week after the Chinese e-commerce giant said on Sunday that it was cooperating with a police investigation into sexual assault allegations by an employee .

Jinan City police confirmed that they are investigating the incident after the woman’s account went viral late Saturday and caused social media madness on China’s Twitter-like microblogging website Weibo.

According to the woman, she was sexually abused by her boss and a customer while on a business trip late last month. Upon her return on August 2, she reported the alleged sexual misconduct to human resources and senior management, and requested that her boss be dismissed.

While HR initially agreed, it ultimately wasn’t pulled through, they claimed. The negative backlash led Alibaba CEO Daniel Zhang to apologize for the company’s poor handling of the matter.

Alibaba pledged to provide more detailed information on the case while continuing to work with law enforcement agencies on the investigation, the company said.

BABA daily chart

BABA stock – which has fallen roughly 16% year-to-date – closed at $ 196.39 on Friday, not far from a recent 16-month low of $ 179.71 on July 27, with a market cap of 533.8 Billion dollars.

Given the recent negative news, BABA stock is likely to remain on the defensive as the company continues to face tough challenges.

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