Breakfast News: Abel Takes Berkshire Center Stage

Breakfast News: Abel Takes Berkshire Center Stage

May 4, 2026

Source: Image created by Jester AI.

1. New Berkshire Hathaway Era Gets Underway

Berkshire Hathaway (BRKB +0.18%) posted first-quarter earnings Saturday, the day Greg Abel hosted his first annual shareholder meeting as CEO. Revenue grew 4% year over year, with earnings per B share up 120%. Both, however, missed expectations – as much of the headline gains came from investment holdings revaluations. A Stock Advisor recommendation by Team Hidden Gems, Berkshire saw no real pre-market share price movement as a result.

• “There are no bigger shoes to fill”: On Warren Buffett’s last day as CEO, TMF Chief Investment Officer Andy Cross hinted at the task facing Greg Abel. The new boss reassured shareholders he’ll continue to seek targets for the company’s cash pile – now at a record $380 billion – but only at the right valuations. And he dismissed any talk of a Berkshire breakup.
• “We’ve never had more people in a gambling mood than now”: Buffett had wise words for investors relating to current market conditions, adding, “That doesn’t mean investing is terrible, but it does mean that prices for an awful lot of things will look awfully silly.”

2. GameStop Bids Big for eBay

GameStop (GME +1.29%) announced Sunday it’s launched an audacious bid for Dividend Investor recommendation eBay (EBAY +1.19%), with a nonbinding offer of $125 per share – spread 50/50 between cash and stock – valuing eBay at around 20% higher than at Friday’s close. eBay jumped 8% in pre-market trading – still some way short of the offer value – as GameStop was largely unmoved.

• “It could be a legit competitor to Amazon”: Gamestop CEO Ryan Cohen told The Wall Street Journal a merger could boost earnings and cut costs – expecting $2 billion of annual savings within 12 months if it goes ahead. He plans to take the bid hostile with a direct approach to shareholders if necessary.
• “Highly confident letter” from TD Bank: GameStop says it’s secured around $20 billion in debt funding in its attempt to take control of a target valued close to 4 times its own market cap.

3. Markets Surge as Jobs Print Looms

The S&P 500 ended Friday with a 0.91% rise on the week, with the Nasdaq gaining 1.12% to take it above 25,000 points. Both hit new record highs. Bitcoin (BTC +0.11%) broke back above $80,000 for the first time in over three months. Optimism appears to be continuing – as S&P 500 futures ticked up 0.1% pre-market, and Nasdaq futures rose 0.2%, as hopes for talks on the Iran conflict emerge – though WTI crude remained above $100 per barrel.

• Cautious April jobs print: After March’s nonfarm payrolls soared above expectations with 178,000 new jobs added, Friday’s April figure is expected to come in significantly lower – with a 53,000 count predicted. The April unemployment rate is expected to hold steady from March at 4.3%.
• Earnings season in full flood: This week brings a number of scheduled reports from key Fool favorites – more than we can cover in today’s Breakfast News weekly look-ahead. We’ll bring them to you on a day-by-day basis.

4. Selected Earnings to Start the Week

• Vertex Pharmaceuticals (VRTX +1.04%) will report its first quarter of fiscal 2026 after markets close today. The SA recommendation by Team Rule Breakers develops medicines for serious genetic diseases. At Q4 time, the company anticipated approximately 7% revenue growth year over year (YOY) in Q1.
• Shopify (SHOP 1.37%) reports Q1 before Tuesday’s opening bell, after closing out fiscal 2025 with a 31% rise in Q4 revenue YOY. That made it 11 consecutive quarters of 25% or greater revenue growth. Investors should watch how planned new product spend might impact profitability in fiscal 2026.
• Arista Networks (ANET +0.07%) is due to post a Q1 update after Tuesday’s close, following a record Q4. Management has set a $3.25 billion AI networking target for 2026, so investors should watch for progress on that front. Arista, also recommended by Team Hidden Gems, is beating the S&P 500 by 477% since its 2022 Rule Breakers recommendation.

5. Your Take

What’s your top investing priority this month – learning something new, making a move you’ve been considering, or simply staying patient?

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