Berkshire Hathaway Sells All Amazon Shares Amid Strategic Shift
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Amazon Share Sale: Berkshire Hathaway sold 2.3 million shares of Amazon in Q1, reflecting a strategic shift despite Amazon's strong performance in e-commerce and cloud computing, as its small portfolio percentage indicated a reassessment of investment priorities within the $263 billion portfolio.
- New CEO's Strategy: New CEO Greg Abel quickly adjusted the investment strategy post-takeover by closing several positions and increasing stakes in new companies, indicating a potential shift in leadership style compared to Warren Buffett, which may influence future investment directions.
- Investment in Macy's: Berkshire Hathaway acquired 3 million shares of Macy's, which has faced significant challenges but may have undervalued real estate assets, highlighting the company's ongoing focus on value investing despite the retailer's struggles.
- Improved Financial Performance: Macy's reported a 1.8% year-over-year increase in net sales to $4.7 billion in Q1 of fiscal 2026, with adjusted EPS of $0.13 exceeding Wall Street estimates, indicating progress in its turnaround efforts amidst ongoing risks.
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Analyst Views on M
Wall Street analysts forecast M stock price to fall
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 23.030
Low
8.00
Averages
21.33
High
27.00
Current: 23.030
Low
8.00
Averages
21.33
High
27.00
About M
Macy's, Inc. is an omni-channel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Cerulean 6, Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C, jenni, JM Collection, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Greg Abel's First Quarter as CEO of Berkshire Hathaway
- Reason for Amazon Sale: Berkshire Hathaway held approximately 2.3 million shares of Amazon in Q4, and despite Amazon's strong performance in e-commerce and cloud computing, its negligible portion of Berkshire's $263 billion portfolio made the sale unsurprising, reflecting CEO Abel's reassessment of the investment strategy.
- Investment in Macy's: Berkshire Hathaway purchased about 3 million shares of Macy's, which has faced significant challenges, yet the company's Q1 2026 net sales increased by 1.8% year-over-year, indicating potential recovery that may have caught Abel's attention.
- Attractive Valuation of Macy's: Macy's forward P/E ratio stands at 10.2, significantly lower than the consumer discretionary average of 26.2, suggesting it may be undervalued, and Abel's investment could be based on optimism regarding the value of its real estate holdings.
- Financial Performance Exceeds Expectations: Macy's adjusted EPS reached $0.13 in Q1 2026, an 18% increase year-over-year, surpassing Wall Street estimates, and the company raised its full-year guidance, indicating a positive operational trajectory that may bolster Berkshire's investment confidence.
See More
Berkshire Hathaway Sells All Amazon Shares Amid Strategic Shift
- Amazon Share Sale: Berkshire Hathaway sold 2.3 million shares of Amazon in Q1, reflecting a strategic shift despite Amazon's strong performance in e-commerce and cloud computing, as its small portfolio percentage indicated a reassessment of investment priorities within the $263 billion portfolio.
- New CEO's Strategy: New CEO Greg Abel quickly adjusted the investment strategy post-takeover by closing several positions and increasing stakes in new companies, indicating a potential shift in leadership style compared to Warren Buffett, which may influence future investment directions.
- Investment in Macy's: Berkshire Hathaway acquired 3 million shares of Macy's, which has faced significant challenges but may have undervalued real estate assets, highlighting the company's ongoing focus on value investing despite the retailer's struggles.
- Improved Financial Performance: Macy's reported a 1.8% year-over-year increase in net sales to $4.7 billion in Q1 of fiscal 2026, with adjusted EPS of $0.13 exceeding Wall Street estimates, indicating progress in its turnaround efforts amidst ongoing risks.
See More
Macy's Achieves Best Quarter in Four Years Amid Strategic Shift
- Performance Recovery: After closing underperforming stores and focusing on high-margin luxury goods, Macy's achieved its best quarterly performance in four years, marking four consecutive quarters of comparable sales growth, demonstrating the effectiveness of its 'Bold New Chapter' strategy.
- Stock Price Surge: The strong performance lifted Macy's shares to their highest level since January, also boosting peers Dillard's and Kohl's, reflecting market confidence in the company's turnaround efforts.
- Strategic Investment: Analysts highlight Macy's investment in luxury segments, particularly Bloomingdale's and Bluemercury, as structural growth engines that are gaining market share amid challenges faced by Saks, further solidifying its competitive position.
- Prudent Guidance: Macy's management adopted a cautious approach to future guidance, considering potential impacts from macroeconomic and geopolitical factors, projecting FY2026 net sales between $21.5 billion and $21.75 billion, with adjusted EPS expectations of $2 to $2.20.
See More
Macy's Stock Rises 11% on Berkshire Stake and Earnings Beat
- Stock Surge: Macy's shares rose 11% in May, driven by Berkshire Hathaway's new stake and a solid earnings report, indicating signs of business recovery amidst a challenging retail environment.
- Earnings Highlights: In the first quarter of fiscal 2026, adjusted earnings per share (EPS) reached $0.13, significantly surpassing Wall Street's expectation of $0.03, while comparable sales increased by 3% year-over-year, marking the best performance in four years and reflecting positive momentum in the company's transformation efforts.
- Strategic Shift: Macy's is executing its 'Bold New Chapter' strategy by closing underperforming stores and reallocating resources to stronger locations, alongside a heightened focus on e-commerce and omnichannel shopping to adapt to changing retail dynamics.
- Investment Appeal: Despite a 70% decline from its decade-high stock price, Macy's trades at less than nine times trailing earnings and offers a 3.4% dividend yield, making it attractive to value investors, especially as the company's new strategy begins to show results.
See More
Macy's Q1 Earnings Beat Expectations Amid Strategic Shift
- Earnings Growth: Macy's reported a 3% increase in comparable sales for Q1, surpassing Wall Street's expectation of 0.3%, demonstrating the company's adaptability in a changing retail environment, particularly with Bloomingdale's achieving a remarkable 10.2% comps increase, which significantly bolstered overall performance.
- Stock Price Recovery: Macy's shares rose 11% in May, partly due to Berkshire Hathaway's newly opened stake, although the stock is still down 70% from its peak a decade ago, its current valuation at less than nine times trailing earnings has attracted investor interest.
- Strategic Transformation: The company is executing its
See More
Macy's Q1 Earnings Beat Expectations Amid Strategic Growth
- Earnings Surprise: Macy's reported adjusted EPS of $0.13 for Q1, significantly exceeding the Zacks consensus estimate of $0.02, representing a remarkable 678.44% surprise, while revenues reached $4.68 billion, surpassing expectations by 1.28%, indicating strong market performance.
- Sales Momentum: The company achieved its best comparable sales performance in four years, with all brands and channels showing positive growth, particularly Bloomingdale's and Bluemercury, which rose by 10.2% and 6.4% respectively, validating the effectiveness of its new strategy.
- Strategic Guidance: Management raised its fiscal 2026 sales outlook to between $21.5 billion and $21.75 billion, reflecting confidence in future growth while continuing to invest in the Reimagine initiative and digital transformation efforts.
- Cost Management Amid Challenges: Although gross margin dipped to 38.9%, management highlighted the positive impact of expense control, with SG&A remaining stable as a percentage of revenues, while also acknowledging ongoing pressures from tariffs and transportation costs, necessitating a cautious approach to external conditions.
See More
Analysis of Greg Abel's First Quarter as CEO of Berkshire Hathaway
- Reason for Amazon Sale: Berkshire Hathaway held approximately 2.3 million shares of Amazon in Q4, and despite Amazon's strong performance in e-commerce and cloud computing, its negligible portion of Berkshire's $263 billion portfolio made the sale unsurprising, reflecting CEO Abel's reassessment of the investment strategy.
- Investment in Macy's: Berkshire Hathaway purchased about 3 million shares of Macy's, which has faced significant challenges, yet the company's Q1 2026 net sales increased by 1.8% year-over-year, indicating potential recovery that may have caught Abel's attention.
- Attractive Valuation of Macy's: Macy's forward P/E ratio stands at 10.2, significantly lower than the consumer discretionary average of 26.2, suggesting it may be undervalued, and Abel's investment could be based on optimism regarding the value of its real estate holdings.
- Financial Performance Exceeds Expectations: Macy's adjusted EPS reached $0.13 in Q1 2026, an 18% increase year-over-year, surpassing Wall Street estimates, and the company raised its full-year guidance, indicating a positive operational trajectory that may bolster Berkshire's investment confidence.
See More
Berkshire Hathaway Sells All Amazon Shares Amid Strategic Shift
- Amazon Share Sale: Berkshire Hathaway sold 2.3 million shares of Amazon in Q1, reflecting a strategic shift despite Amazon's strong performance in e-commerce and cloud computing, as its small portfolio percentage indicated a reassessment of investment priorities within the $263 billion portfolio.
- New CEO's Strategy: New CEO Greg Abel quickly adjusted the investment strategy post-takeover by closing several positions and increasing stakes in new companies, indicating a potential shift in leadership style compared to Warren Buffett, which may influence future investment directions.
- Investment in Macy's: Berkshire Hathaway acquired 3 million shares of Macy's, which has faced significant challenges but may have undervalued real estate assets, highlighting the company's ongoing focus on value investing despite the retailer's struggles.
- Improved Financial Performance: Macy's reported a 1.8% year-over-year increase in net sales to $4.7 billion in Q1 of fiscal 2026, with adjusted EPS of $0.13 exceeding Wall Street estimates, indicating progress in its turnaround efforts amidst ongoing risks.
See More
Macy's Achieves Best Quarter in Four Years Amid Strategic Shift
- Performance Recovery: After closing underperforming stores and focusing on high-margin luxury goods, Macy's achieved its best quarterly performance in four years, marking four consecutive quarters of comparable sales growth, demonstrating the effectiveness of its 'Bold New Chapter' strategy.
- Stock Price Surge: The strong performance lifted Macy's shares to their highest level since January, also boosting peers Dillard's and Kohl's, reflecting market confidence in the company's turnaround efforts.
- Strategic Investment: Analysts highlight Macy's investment in luxury segments, particularly Bloomingdale's and Bluemercury, as structural growth engines that are gaining market share amid challenges faced by Saks, further solidifying its competitive position.
- Prudent Guidance: Macy's management adopted a cautious approach to future guidance, considering potential impacts from macroeconomic and geopolitical factors, projecting FY2026 net sales between $21.5 billion and $21.75 billion, with adjusted EPS expectations of $2 to $2.20.
See More
Macy's Stock Rises 11% on Berkshire Stake and Earnings Beat
- Stock Surge: Macy's shares rose 11% in May, driven by Berkshire Hathaway's new stake and a solid earnings report, indicating signs of business recovery amidst a challenging retail environment.
- Earnings Highlights: In the first quarter of fiscal 2026, adjusted earnings per share (EPS) reached $0.13, significantly surpassing Wall Street's expectation of $0.03, while comparable sales increased by 3% year-over-year, marking the best performance in four years and reflecting positive momentum in the company's transformation efforts.
- Strategic Shift: Macy's is executing its 'Bold New Chapter' strategy by closing underperforming stores and reallocating resources to stronger locations, alongside a heightened focus on e-commerce and omnichannel shopping to adapt to changing retail dynamics.
- Investment Appeal: Despite a 70% decline from its decade-high stock price, Macy's trades at less than nine times trailing earnings and offers a 3.4% dividend yield, making it attractive to value investors, especially as the company's new strategy begins to show results.
See More
Macy's Q1 Earnings Beat Expectations Amid Strategic Shift
- Earnings Growth: Macy's reported a 3% increase in comparable sales for Q1, surpassing Wall Street's expectation of 0.3%, demonstrating the company's adaptability in a changing retail environment, particularly with Bloomingdale's achieving a remarkable 10.2% comps increase, which significantly bolstered overall performance.
- Stock Price Recovery: Macy's shares rose 11% in May, partly due to Berkshire Hathaway's newly opened stake, although the stock is still down 70% from its peak a decade ago, its current valuation at less than nine times trailing earnings has attracted investor interest.
- Strategic Transformation: The company is executing its
See More
Macy's Q1 Earnings Beat Expectations Amid Strategic Growth
- Earnings Surprise: Macy's reported adjusted EPS of $0.13 for Q1, significantly exceeding the Zacks consensus estimate of $0.02, representing a remarkable 678.44% surprise, while revenues reached $4.68 billion, surpassing expectations by 1.28%, indicating strong market performance.
- Sales Momentum: The company achieved its best comparable sales performance in four years, with all brands and channels showing positive growth, particularly Bloomingdale's and Bluemercury, which rose by 10.2% and 6.4% respectively, validating the effectiveness of its new strategy.
- Strategic Guidance: Management raised its fiscal 2026 sales outlook to between $21.5 billion and $21.75 billion, reflecting confidence in future growth while continuing to invest in the Reimagine initiative and digital transformation efforts.
- Cost Management Amid Challenges: Although gross margin dipped to 38.9%, management highlighted the positive impact of expense control, with SG&A remaining stable as a percentage of revenues, while also acknowledging ongoing pressures from tariffs and transportation costs, necessitating a cautious approach to external conditions.
See More
