What is behind Berkshire Hathaway recent drop in value today

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Berkshire Hathaway slides 4.39% today

Highlights

Berkshire Hathaway's Q4 2025 operating profit fell sharply to $10.2 billion from $14.56 billion year-over-year due to lower insurance underwriting and writedowns on Occidental Petroleum and Kraft Heinz.
Leadership transition from Warren Buffett to Greg Abel was confirmed, while cash and U.S. Treasury holdings rose above $370 billion despite broader market selling pressure.
Berkshire Hathaway shares closed at $482.77, trading below major moving averages (MA-20: $498.05), with sustained selling pressure and intraday momentum signaling a higher risk of further declines toward $470.

Operating profit falls and leadership transition drive negative sentiment

Berkshire Hathaway reported a significant decrease in operating profit for the fourth quarter of 2025, attributed to lower insurance underwriting income and writedowns on investments in Occidental Petroleum and Kraft Heinz. Fourth quarter operating earnings totaled $10.2 billion, down from $14.56 billion a year earlier, with full-year sales reaching $21.86 billion. The transition of leadership from Warren Buffett to Greg Abel was confirmed, and the company's cash and U.S. Treasury holdings increased to over $370 billion, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Berkshire Hathaway under intense selling pressure. The drop below all major moving averages and gap-down open confirm dominant short-term weakness. He believes the weak operating profit and investment writedowns undermine near-term confidence. The loss of momentum on oscillators highlights that previous bullish signals have failed. "Current volatility and failed supports mean I expect further downside until the price action stabilizes above the $495 level."

Viktoras Karapetjanc, expert at Traders Union, highlights the company's robust cash position and leadership transition as key strengths. He notes that despite the recent profit drop, Berkshire's underlying macro and fundamental structure remains positive. The expert sees volatility as an opportunity, and expects renewed upside if the price regains $495. "The market offers multiple setups here, and I remain confident in a bullish reversal above $495 in the near term."

Diverging technical signals amid dominant selling and volatility spike

At $482.77, Berkshire Hathaway shares are trading below all major moving averages: MA-20 ($498.05), MA-50 ($495.53), and MA-200 ($492.47), indicating strong short-, medium-, and long-term downward pressure from sellers. The nearest dynamic support sits at the Ichimoku Kijun ($492.02), while resistance is at the MA-50 ($495.53). Daily momentum readings are conflicted, with MACD still leaning bullish but ADX showing a weak trend and Stoch RSI flashing overbought on the daily chart. However, the BBP signals strong seller dominance, and most intraday oscillators (RSI, Stoch RSI, and CCI) indicate oversold conditions during today’s decline. The Awesome Oscillator supports the underlying short-term bullish structure, yet the sharp daily fall of 4.39% to $482.77 (after a notable gap down from the previous close of $504.93) places the current price near today’s low. This pattern suggests high volatility and sustained selling pressure after the open. Intraday weakness is stronger than most momentum signals implied, signaling a clear divergence between declining price and earlier bullish momentum indications.

Last time, analysts noted that Berkshire Hathaway is exhibiting short- and medium-term weakness with the price trading below its 20- and 50-day moving averages, but still above the 200-day average, as bearish sentiment dominates following weaker profits and a CEO transition. Momentum indicators are mixed—MACD signals a buy while RSI remains moderately positive, yet elevated volatility and recent selling pressure suggest that sideways consolidation near current support and resistance levels is likely in the short term.

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

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