Check out the companies making headlines before the bell. Berkshire Hathaway — Warren Buffett’s conglomerate saw shares fall more than 1% in premarket after hitting a record high Friday. The decline came after Berkshire’s operating earnings fell 14% in the first quarter , driven by a 48.6% plunge in insurance-underwriting profit. Buffett also surprised shareholders by announcing at Saturday’s annual meeting his intention to step down as CEO by the end of the year. The board voted unanimously on Sunday to make Greg Abel president and CEO on Jan. 1, 2026 and for Buffett, 94, to remain as chairman. Streamers — Streaming companies fell after President Donald Trump announced a 100% tariff on movies produced outside of the U.S. in a Sunday Truth Social post to save the “dying” American movie industry. Netflix declined 5%, Disney shed 3%, while Warner Bros. Discovery , Paramount and Amazon respectively slipped 2%, 1% and 1%. United Airlines — The travel stock dipped 1%, giving back some of its 7% gain from Friday. United announced on Friday that it was cutting some of its flights out of Newark, N.J., citing staffing and technology issues at the airport. Howard Hughes Holding — The stock popped 8% after the real estate developer and activist investor Bill Ackman’s Pershing Square said the fund will buy 9 million newly issued shares of Howard Hughes for $100 per share. The price represents a 48% premium to the stock’s closing price on Friday. Sunoco — Shares ticked lower nearly 1% after Sunoco announced it plans to acquire Parkland Corp. The cash and equity deal is valued at $9.1 billion, a figure that includes assumed debt. Wolfspeed — The semiconductor stock popped 7%, adding onto its Friday rally of 24%. Shares soared after Wolfspeed last week reaffirmed its third-quarter guidance and announced that executive vice president and chief financial officer Neill Reynolds would be concluding his position. Loews — The luxury hospitality stock rose 0.6% after the company reported first-quarter earnings of $1.74, which came below last year’s figures of $2.05. However, Loews posted revenue of $4.49 billion, which was 6% higher versus the year-ago number of $4.23 billion. — CNBC’s Michelle Fox, Alex Harring, Yun Li and Jesse Pound contributed reporting.
People watch as Berkshire Hathaway chairman Warren Buffett is seen on a screen speaking at the Berkshire Hathaway Inc annual shareholders’ meeting, in Omaha, Nebraska, U.S., May 3, 2025.
Brendan McDermid | Reuters
Berkshire Hathaway shares are hanging on solidly Monday as investors process Warren Buffett‘s surprise announcement to step down and envision a new path for the conglomerate after his legendary 60-year run.
Buffett, 94, picked the very last moment at Berkshire’s annual meeting in Omaha, Nebraska, to tell his loyal shareholders that it’s time for Greg Abel, vice chairman of non-insurance operations, to replace him as CEO. The board voted unanimously on Sunday to make Abel president and CEO on Jan. 1, 2026, and for Buffett to remain as chairman.
Class B shares fell 2.9% in premarket trading Monday after hitting an all-time high at $539.80 Friday. Class A shares dropped 2.8% after closing at a record high at $809,350 apiece. Berkshire issued Class B shares in 1996 at a price equal to one-thirtieth of a Class A share. In 2010, Berkshire Class B shares split 50-for-1.
“Shareholders should welcome this transparent transition, but also have confidence that Warren isn’t going anywhere,” said Macrae Sykes, portfolio manager at Gabelli Funds and a Berkshire shareholder. “Retaining the position of Chairman means he can continue to mentor Greg and the Berkshire leaders, while also providing additional intellectual capacity when the inevitable time for more major capital allocation occurs.”
It marks an end of an epic era for Berkshire, which was a failing New England textile mill six decades ago when Buffett used an investment partnership he ran to take control. Berkshire has grown into a one-of-a-kind juggernaut worth nearly $1.2 trillion with businesses encompassing insurance, railroad, retail, manufacturing and energy. Buffett is handing over his reins on a particularly high note as Berkshire shares just reached a new peak Friday.
Berkshire Hathaway Class B shares
“Buffett leaves a company that is less reliant on his investing capabilities, with an array of leading businesses with strong cash flows,” Brian Meredith, UBS’ Berkshire analyst, said in a note. “Operationally, we expect little change at BRK and the culture/strategy to remain unchanged under Abel.”
The stock could also be reacting to Berkshire’s first-quarter results that showed a 14% decline in operating earnings, driven by a 48.6% plunge in insurance-underwriting profit. Berkshire said the Southern California wildfires led to a $1.1 billion loss during the period.
Berkshire shares have significantly outperformed the S&P 500, rising nearly 19% this year. Investors seeking relatively safe places to hide find Berkshire appealing because of the defensive nature of its huge insurance empire and the conglomerate’s unmatched balance sheet.
OMAHA, Nebraska — Warren Buffett said he will ask the board of Berkshire Hathaway to replace him as CEO with his already designated successor, Greg Abel, at year end.
Buffett noted that he would still ‘hang around’ to help, but the final word would be with Abel.
The investing legend said at the annual meeting celebrating 60 years of him at the helm of Berkshire that he wouldn’t sell a single share.
“I would add this, the decision to keep every share is an economic decision because i think the prospects of Berkshire will be better under Greg’s management than mine,” said Buffett.
Buffett and Abel told CNBC’s Becky Quick after the shareholder meeting that the pair would discuss at a Sunday board meeting what Buffett’s role will be formally. Buffett, 94, is currently CEO and chairman of the conglomerate.
So it’s not clear whether Abel will also assume the chairman role.
This is breaking news. Please check back for updates.
OMAHA, Nebraska — Warren Buffett on Saturday criticized President Donald Trump’s hardline trade policy, without naming him directly, saying it’s a big mistake to slap punitive tariffs on the rest of the world.
“Trade should not be a weapon,” Buffett said at Berkshire Hathaway‘s annual shareholder meeting. “The United States won. I mean, we have become an incredibly important country, starting from nothing 250 years ago. There’s not been anything like it.”
“It’s a big mistake, in my view, when you have seven and a half billion people that don’t like you very well, and you got 300 million that are crowing in some way about how well they’ve done – I don’t think it’s right, and I don’t think it’s wise,” he added.
Buffett’s comments, his most direct yet on tariffs, came after the White House’s rollout of the highest levies on imports in generations shocked the world last month, triggering extreme volatility on Wall Street. The president also announced a sudden 90-day pause on much of the increase, except for China, as the White House sought to make deals with countries.
Trump has slapped tariffs of 145% on imported Chinese goods this year, prompting China to impose retaliatory levies of 125%. China said last week it is evaluating the possibility of starting trade negotiations with the U.S.
“I do think that the more prosperous the rest of the world becomes, it won’t be at the our expense, the more prosperous we’ll become, and the safer we’ll feel, and your children will feel someday,” Buffett said.
Investors had been waiting to hear from the 94-year-old “Oracle of Omaha” for his guidance to navigate the uncertain macroenvironment as well as his assessment on the state of the economy. The trillion-dollar Berkshire’s vast array of insurance, transportation, energy, retail and other businesses, from Geico to Burlington Northern to Dairy Queen, leave Buffett uniquely qualified to comment on the current health of the American economy. The first-quarter GDP was just reported to have contracted for the first time since 2022.
Berkshire said in its first-quarter earnings report that tariffs and other geopolitical events created “considerable uncertainty” for the conglomerate. The firm said it’s not able to predict any potential impact from tariffs at this time.
Buffett has been in a defensive mode, selling stocks for 10 straight quarters. Berkshire dumped more than $134 billion worth of stock in 2024, mainly due to reductions in Berkshire’s two largest equity holdings — Apple and Bank of America. As a result of the selling spree, Berkshire’s enormous pile of cash grew to yet another record, at $347 billion at the end of March.