On a day of strong market movements, three major companies caught investors’ attention with notable developments and price swings. Ulta Beauty (NASDAQ: ULTA) surged after news of Warren Buffett’s investment, Walmart (NYSE: WMT) impressed with strong earnings, and Cisco (NASDAQ: CSCO) announced restructuring plans and better-than-expected results.
Ulta Beauty share price rises rapidly thanks to support from Warren Buffett
Ulta Beauty (ULTA) shares rose 11.28% to $366.16 after Warren Buffett’s Berkshire Hathaway announced a new stake in the company. The investment, valued at $266.3 million at the end of the second quarter, represents a vote of confidence from one of the world’s most renowned investors. Despite the recent uptrend
Ulta stock still has negative returns year-to-date (-25.27%) and over the past year (-20.15%). With a market capitalization of $17.472 billion and a price-to-earnings ratio of 12.84, analysts are sticking to an average price target of $464.77 for the cosmetics retailer.
Walmart rises after excellent second-quarter results
Walmart (WMT) shares rose 6.63% to $73.21 after releasing its impressive second-quarter earnings report. The retail giant beat expectations with adjusted earnings per share of $0.67 versus $0.64 expected and revenue of $169.3 billion versus $168.52 billion expected.
Walmart’s success was based on strong performance across several segments, including a 21% increase in global e-commerce sales and a 26% growth in its global advertising business.
The company’s market capitalization is now $588.988 billion, with a price-to-earnings ratio of 29.47. Walmart also raised its full-year 2025 forecast, citing continued customer base of higher-income consumers.
Cisco reports better-than-expected earnings and continues restructuring plans
Cisco Systems (CSCO) shares rose 6.89% to $48.57 after the company reported better-than-expected quarterly results and announced major restructuring plans.
The networking equipment maker reported adjusted earnings of 87 cents per share, beating expectations of 85 cents, on revenue of $13.64 billion. However, those revenues represent a 10% decline from a year ago. Cisco plans to cut 7% of its global workforce, or about 5,940 jobs, in its second major wave of layoffs this year.
The restructuring is expected to result in a pre-tax charge of $1 billion as the company shifts its focus to high-growth areas such as artificial intelligence and cybersecurity. Cisco’s market capitalization reached $195.699 billion, with a price-to-earnings ratio of 17.89.
Disclaimer: The author does not own or have a position in any securities discussed in the article.
About the author
Tim Fries is co-founder of The Tokenist. He holds a BS in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior associate on the investment team in RW Baird’s US private equity division and is also co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
