When Warren Buffett buys stocks, investors copy him. In the last quarter, Buffett’s Berkshire Hathaway (BRK-B) bought Ulta Beauty (ULTA) shares. The disclosure led to a massive 11.17% daily rally on Thursday.
The investment firm initiated a 690,000 share position in ULTA stock. The news lifted specialty retail stocks. Estee Lauder (EL) trended higher while Sally Beauty (SBH) gained 11.45%.
Markets are bullish on AI-related server suppliers again. After holding the $500 support line, Super Micro Computer (SMCI) added $49.60 to close at $626.69. Its next resistance prices are $680, $780, and around $900. Short-sellers took a 10.77% short float against SMCI stock.
Bears must exercise betting against SMCI. Nvidia (NVDA) will likely post strong quarterly revenue again. This will lift SMCI stock, further squeezing bears. Still, risks are growing that AI will not deliver on its promises. Corporations will eventually review the net profit gained or loss from AI-related projects.
In the lithium mining sector, speculators are betting that Albemarle (ALB) shares bottomed at $71.97. The short float is 12.38%. Fundamentals for electric vehicles continue to worsen. Consumers are cautious about buying expensive, six-figure-priced EVs. That would hurt lithium prices.
Look at Walmart (WMT) or Costco (COST) instead. Consumers prefer to allocate their spending budget to those retailers.