Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska on May 3, 2024.
David A. Grogen | CNBC
Warren Buffett’s Berkshire Hathaway has reduced its stake in Bank of America to below 10% amid a selling spree that started in mid-July.
In a Thursday night filing with the U.S. Securities and Exchange Commission, Buffett disclosed the sale of more than 9.5 million shares, split between three transactions made from Tuesday to Thursday. The move brings his holdings down to 775 million shares, or a stake of about 9.987%.
Since the holding is now under the key 10% threshold, Berkshire is no longer required to report its related transactions in a timely manner. The SEC requires shareholders who own more than 10% of a company’s equity securities to report transactions involving that company’s equity within two business days.
Buffett watchers won’t find out the Oracle of Omaha’s next moves for a while. The next 13F filing in mid-November will only reveal Berkshire’s equity holdings as of the end of September. Berkshire remains BofA’s biggest institutional investor.
Shares of the bank have inched up about 1% in the past month despite Berkshire’s selling. Bank of America CEO Brian Moynihan previously said the market is absorbing the stock, aided by the bank’s own repurchasing.
Buffett famously bought $5 billion of Bank of America preferred stock and warrants in 2011 to shore up confidence in the embattled lender in the wake of the subprime mortgage crisis. He converted the warrants to common stock in 2017, making Berkshire the largest shareholder in the bank. Buffett then added 300 million more shares to his bet in 2018 and 2019.
‘Very cautious’
The recent BofA sales came after Buffett spent the past few years dumping a variety of longtime holdings in the banking industry, including JPMorgan, Goldman Sachs, Wells Fargo and U.S. Bancorp. The Berkshire CEO struck a pessimistic tone last year when he opined on 2023’s banking crisis.
“You don’t know what has happened to the stickiness of deposits at all,” Buffett said. “It got changed by 2008. It’s gotten changed by this. And that changes everything. We’re very cautious in a situation like that about ownership of banks.”
Buffett believes bank failures in 2008 during the global financial crisis, and again in 2023, lessened confidence in the system, made worse by poor messaging by regulators and politicians. Meanwhile, digitalization and fintech made bank runs a simple matter at times of crisis.
Check out the companies making headlines before the bell. Hims & Hers Health — Shares tumbled 22%. While the telehealth provider posted a fourth-quarter earnings and revenue beat , it said it would no longer be able to sell compounded versions of weight loss drugs after the first quarter. This comes after the Food and Drug Administration declared weight loss drugs like Wegovy are no longer in shortage, closing a loophole that allowed Hims & Hers to supply the products. Tempus AI — Tempus AI shares slipped 14% after the company’s fourth-quarter revenue fell short of expectations. The company posted revenue of $201 million, which was below the LSEG estimate of $203 million. For 2025, the company expects revenue of $1.24 billion. Eli Lilly — Shares rose 1% after the pharmaceutical company launched higher dose vials of its weight loss drug Zepbound at a lower price for self-pay patients through its direct-to-consumer website. Chegg — Shares of the online education company, which is now worth less than $200 million, plunged roughly 20% after it posted a net loss of $6.1 million on revenue of $143.5 million in the fourth quarter. Revenue was down 24% year over year. Chegg said it sued Google, claiming that the tech company’s artificial intelligence summaries of search results have hurt Chegg’s traffic and revenue. Keurig Dr Pepper — Shares of the beverage company jumped nearly 3% after Keurig beat earnings and revenue expectations for the fourth quarter. Keurig posted quarterly adjusted earnings of 58 cents a share on revenue of $4.07 billion, while analysts polled by FactSet called for earnings, excluding items, of 57 cents a share on revenue of $4.01 billion. Cleveland-Cliffs — The steel stock fell 3% after a wider-than-expected loss for the fourth quarter. Cleveland-Cliffs reported a loss of 92 cents per share for the fourth quarter, while analysts were anticipating a loss of 61 cents, according to LSEG. Revenue declined 15% year over year. Krispy Kreme — The doughnut stock pulled back more than 18% after missing fourth-quarter expectations. Krispy Kreme earned 1 cent per share, excluding items, on revenue of $404 million. Analysts polled by FactSet were looking for earnings of 10 cents per share, excluding items, and $414 million in revenue. The company’s full-year outlook also missed Wall Street’s estimates for both earnings and revenue. Li Auto — The Chinese electric vehicle stock gained nearly 14% after Li debuted its first fully electric sports utility vehicle, the Li I8. Zoom Communications — Shares of the video chat company slipped 4% after Zoom’s revenue guidance came out short. The company expects full-year revenue of between $4.79 billion and $4.8 billion, while analysts polled by FactSet expect $4.81 billion. Zoom beat adjusted earnings expectations for the fourth quarter and posted in-line revenue, according to LSEG. Home Depot — The home improvement retailer added 1% after reporting fourth-quarter financial results . Earnings came in at $3.02 per share, slightly above the $3.01 expected from analysts polled by LSEG. Revenue was $39.7 billion, versus the $39.16 consensus estimate. However, Home Depot expects adjusted earnings per share to fall 2% from the prior year. Crypto stocks — Sell pressure in equities crippled the crypto market, leading crypto company stocks to fall and the price of bitcoin to drop through the $90,000 level overnight. Bitcoin is now about 20% off its all-time high reached on President Donald Trump’s inauguration day. Shares of Robinhood dropped about 4%, while Coinbase and Strategy , formerly known as MicroStrategy, shed about 4% and 5%, respectively. — CNBC’s Jesse Pound, Alex Harring, Sarah Min, Brian Evans, Lisa Han and Michelle Fox contributed reporting.
Check out the companies making headlines in after-hours trading: Hims & Hers Health — The telehealth stock fell more than 17%. Hims & Hers reported a gross margin of 77% for the fourth quarter, while analysts polled by StreetAccount expected 78.4%. This overshadowed the company’s top- and bottom-line beats for the quarter. Zoom Communications — Shares of the video-conferencing company fell about 1% after Zoom Communications delivered a revenue outlook that narrowly missed analysts’ expectations. The company is calling for full-year revenue of $4.79 billion to $4.80 billion, while analysts polled by LSEG looked for $4.81 billion. Cleveland-Cliffs — The steel producer pulled back 2% after its fourth-quarter results missed Wall Street’s expectations. Cleveland-Cliffs reported a loss of 92 cents per share on $4.33 billion in revenue. Analysts had penciled in a loss of 61 cents per share and $4.43 billion in revenue for the quarter, per LSEG. Tempus AI — Shares tumbled 7% on the heels of the health tech company’s weaker-than-expected fourth-quarter revenue. Tempus AI reported revenue of $201 million, below the $203 million that analysts surveyed by LSEG were looking for. Losses per share, however, came in narrower than expected for the period. Diamondback Energy — The oil and natural gas stock rose 1% following the company’s strong quarterly results. The company posted adjusted earnings of $3.64 per share on $3.71 billion in revenue for the fourth quarter, above the consensus estimate of $3.35 per share and $3.53 billion in revenue, according to LSEG. Topgolf Callaway Brands — Shares added about 3% after the golf company posted fourth-quarter results that beat estimates. Topgolf reported a loss of 33 cents per share on revenue of $924 million, while analysts polled by LSEG anticipated a loss of 42 cents per share and $885 million in revenue. — CNBC’s Darla Mercado contributed reporting.
Dario Amodei, Anthropic CEO, speaking on CNBC’s Squawk Box outside the World Economic Forum in Davos, Switzerland on Jan. 21st, 2025.
Gerry Miller | CNBC
Anthropic is in talks to raise a $3.5 billion funding round, significantly more than the amount previously expected, CNBC has confirmed.
The round would roughly triple the artificial intelligence startup’s valuation to $61.5 billion, according to two sources familiar with the deal, who asked not to be named because the details aren’t public. Lightspeed Ventures is leading the funding, with participation from General Catalyst and others, the sources said.
The financing, which was first reported by the Wall Street Journal, signals continued investor demand for top-tier AI companies, even in the face of potential disruption from China’s DeepSeek. Anthropic is backed by Amazon and Google, and had initially set out to raise $2 billion, according to a source.
Anthropic declined to comment.
The company’s last private market valuation was $18 billion. Amazon has poured $8 billion into the startup.
Anthropic was founded by early OpenAI employees and is the creator of the popular chatbot Claude. Earlier Monday, Anthropic released what it says is it’s “most intelligent AI model yet. Its so-called hybrid model combines an ability to reason — or stopping to think about complex answers — with a traditional model that spits out answers in real time.