Management handover and profit slump — Berkshire Hathaway stock drops 3.47%

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Berkshire Hathaway slides 3.47% today

Highlights

Berkshire Hathaway posted a 30% decline in Q4 operating profit, driven by insurance underperformance and a $3.76 billion Kraft Heinz writedown.
Management transition is underway with Greg Abel becoming CEO, while cash and U.S. Treasury holdings reached a record $370 billion by end-2025.
Technicals show shares at $487.39, below MA-20 and MA-50 but above MA-200, with strong resistance at $492.02 and next five-day range likely $475–$505.

Profit slump and CEO transition drive bearish sentiment amid high cash

Berkshire Hathaway reported a 30% decline in fourth-quarter operating profit, mainly due to weaker performance in its insurance operations and investment writedowns related to Occidental Petroleum and Kraft Heinz. This quarter also signaled a management transition, with Greg Abel taking over as CEO from Warren Buffett. The company's cash and U.S. Treasury holdings rose to a record high of over $370 billion by the end of 2025, and a $3.76 billion impairment charge was recorded against its Kraft Heinz investment. Institutional shareholders such as Morgan Stanley Pathway Large Cap Equity ETF were reported to have modestly increased their stakes, though price action has remained under broader selling pressure.

Bullish signals diverge from sharp selloff as volatility spikes post-gap down

The current price of $487.39 is trading below the MA-20 ($498.05) and MA-50 ($495.53) but remains above the MA-200 ($492.47), showing short- and medium-term weakness while maintaining longer-term support. The Ichimoku Kijun at $492.02 is above the current price, which now acts as immediate resistance. Momentum on the daily chart is mixed: MACD signals a buy, while ADX remains neutral, indicating a lack of strong trend direction. The RSI is moderately positive at 59.56, but both Stochastic RSI and Bull/Bear Power indicate overbought conditions and a tilt toward buyer dominance. The CCI and Awesome Oscillator show continued upward momentum, yet today’s action contradicts these signals with a sharp 3.47% slide, including a significant gap down at the open and a price now at the bottom of the day's range ($493.56 – $495.01). Volatility is high, sellers are in control after the open, and the downward move stands in clear contrast to previously bullish momentum readings.

Sideways action likely as technical signals support cautious bullish bias

For the next five trading days, a typical volatility band relative to current levels is expected between $475 and $505. Based on the number of bullish weekly signals (three out of four: RSI, MACD, and MA-50), the probability of a price increase is high (around 75%), while the likelihood of a further decline is less. The baseline scenario suggests price consolidation in a sideways band near current levels, while a bullish scenario would require a sustained move above the immediate resistance at $492.02. Conversely, a bearish scenario could emerge if price drops below $475, exposing further downside.

Anton Kharitonov, expert at Traders Union, sees Berkshire Hathaway under pressure after a sharp drop below key moving averages and following weak quarterly results. He notes that technical indicators show mixed momentum, while sentiment is cautious due to profit declines and management changes. The analyst believes price remains vulnerable as long as it stays below $492.02, with the risk of further selling if $475 is lost. "Base case remains sideways consolidation; I stay neutral until we reclaim $492.02 as support."

Previously it was reported that Berkshire Hathaway Inc. sustained a bullish weekly trend, trading above key moving averages, though weekly momentum signals such as MACD and ADX were mixed and the RSI indicated potential short-term exhaustion. The stock is expected to consolidate within a $490-$505 range, with resistance near $500 and support around $492, as sentiment remains cautiously positive ahead of its upcoming earnings report.

Source of Data: BRK.B Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.