Friday’s Stock Watch: UNH, Intel, and Applied Materials
Several hedge funds and Berkshire Hathaway (BRK-B) took a big bet. Their 13-F filings revealed a position in UnitedHealth (UNH) stock. The news sent UNH stock up by around 10% in after-hours trade on Thursday.
Michael Burry’s Scion, Eminence Capital, and Renaissance Technologies also bought UNH shares in the second quarter. UNH stock traded as low as $234.60 and over $300 in that period.
Rumors that the government would invest in Intel (INTC) are unsettling. First, the U.S. President demanded that Intel (INTC) fire its CEO. After Intel’s CEO visited the White House, the government investment rumor sent INTC up by 7.38% on August 14. Intel has too much security-related technology that the government values. It cannot let the struggling firm lose its way.
Applied Materials (AMAT) fell by nearly 14% in after-hours trade after posting third-quarter results. Revenue of $7.3 billion is up by 7.7% Y/Y. Non-GAAP EPS of $2.48 beat expectations. However, in Q4, it forecasts revenue of $6.2 billion to $7.2 billion. The average estimate was $7.32 billion. The EPS forecast of $1.91 - $2.31 is below the consensus of $2.38.
CFO Brice Hill blamed the “digestion of capacity in China” and non-linear demand for the weak outlook. The dynamic macroeconomic and policy environment (tariffs) increased near-term uncertainties.
