Stock Price Prediction

Based on the recent news and technical analysis, here's the prediction for BRK.B's stock price for the next trading week:

Technical Analysis:

• BRK.B recently hit all-time highs around $747,000 for A shares (approximately $500 for B shares)
• Strong momentum following stellar Q4 earnings with operating profit soaring 71% to $14.5 billion
• Technical analyst Ari Wald from Oppenheimer sees "higher highs" ahead after breaking above September peak of $485

News Sentiment Analysis:

• Positive catalysts:

  • Core insurance business showed exceptional performance with no major disasters in 2024
  • Insurance underwriting operating profit up 31% to $8 billion
  • Power business (Berkshire Hathaway Energy) saw 60% jump in operating income to $3.7 billion

• Cautionary signals:

  • Berkshire sold $134 billion in stocks while only purchasing $9 billion in 2024
  • Company halted share buybacks in Q3 2024 for first time since 2018
  • Currently trading at 1.7x price-to-book and 25x forward P/E

Price Prediction for Next Week:

• Base case (60% probability): $495-505

  • Continued momentum from strong earnings
  • Technical breakout above $485 supporting upward trend

• Bullish case (25% probability): $505-515

  • Further institutional buying on strong fundamentals
  • Market rotation into value stocks

• Bearish case (15% probability): $475-485

  • Profit taking after recent all-time highs
  • Broader market correction

Recommendation: HOLD

• Current price levels near all-time highs suggest limited short-term upside
• Buffett's significant stock sales in 2024 indicate potential market overvaluation
• Better entry points likely to emerge in coming months