Warren Buffett fully exited a stock that Wall Street predicts 50% upside
The post Warren Buffett fully exited a stock that Wall Street predicts 50% upside appeared on BitcoinEthereumNews.com.
During the second quarter, Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) announced an update to its portfolio, with its transaction involving data cloud company Snowflake (NYSE: SNOW) standing out. Notably, Buffett fully exited his position in the stock, offloading almost $1 billion in the company. According to filings, Berkshire Hathaway did not provide a reason for the sale. Still, it aligns with the company’s recent selling spree involving high-profile companies such as technology giant Apple (NASDAQ: AAPL) and Bank of America (NYSE: BAC). The sales have allowed Buffett to amass a cash pile of about $280 billion, which is seen as potentially impacting the stock market in general. Wall Street analysts remain bullish on SNOW Despite Berkshire’s decision to sell, Wall Street analysts remain optimistic about Snowflake’s future. The 33 analysts at TipRanks projected that in the next 12 months, SNOW could trade at an average price of $169, reflecting an upside of about 49% from the stock’s current valuation. The analysts have set a high target of $220 and a low forecast of $121. Most of the experts—23 of them—recommend a ‘moderate buy’ rating for SNOW. SNOW 12-month stock price prediction. Source: TipRanks This sharp divergence between Buffett’s actions and analyst sentiment potentially highlights the difference in investment philosophy. Historically, Buffett has been known to focus on long-term fundamentals and value-based opportunities. At the same time, analysts seem to be banking on Snowflake’s underlying fundamentals that might influence the price in the short term. In recent months, SNOW has been weighed down by bearish sentiment, with the technology stock trading near all-time lows. Analysts take on SNOW stock price Some analysts bullish on SNOW include TD Cowen, who maintained a ‘Buy’ rating and a price target of $180, down from an initial mark of $230 in a note on August…
Filed under: News - @ October 9, 2024 12:19 pm