Before the bell: Deals in Uncertain Times

Investors doubt the capabilities of Berkshire Hathaway’s new CEO, and toy manufacturers are caught in the crossfire of the trade war.

The Euro Stoxx 50 closed flat yesterday, while Belgium’s Bel20 rose 0.5%, once again lifted by the pending merger between real estate players Cofinimmo (+2.1%) and Aedifica (+1.8%). In the U.S., the S&P 500 and Nasdaq declined by 0.6% and 0.7%, respectively. Warren Buffett’s Berkshire Hathaway fell 5.1% as investors showed concern over the 94-year-old stepping down. Shoe brand Skechers soared 24.4% after receiving a $63-per-share buyout offer from 3G Capital.

Hong Kong’s stock exchange reopened today, with the Hang Seng Index climbing 0.8%. Japanese markets remain closed for Greenery Day. In Europe, Germany’s Zalando will report earnings, as will Ferrari in Italy. Across the Atlantic, the spotlight is on earnings from Celsius Holdings, chip designer AMD, and EV makers Lucid and Rivian. On the macro front, we await the eurozone manufacturing PMI data.

Good—but Not Good Enough

Data analytics firm Palantir posted Q1 2025 revenue of $884 million—up 39% year-over-year and ahead of the $862 million expected by analysts. The company raised its full-year revenue forecast to $3.9 billion, again beating expectations. Palantir, known for helping defense and private-sector clients make data-driven decisions, is “on fire,” according to its CEO. However, the stock is also one of the most expensive in the S&P 500, and after a 60% rise since January, investors took profits—sending the share down 9% in after-hours trading.

Made in China

You’ve seen it: the tiny printed label on nearly every plastic toy. That’s why it’s no surprise that Mattel—the company behind Fisher-Price, Hot Wheels, Barbie, and even UNO—issued a profit warning. The $42 billion U.S. toy market is now burdened with tariffs as high as 145%, complicating demand forecasting. In response, Mattel has withdrawn its forward guidance. Last week, Donald Trump quipped that “kids might just have two slightly more expensive dolls instead of 30 from China,” but such comments offer little comfort to the industry. We’re curious to see how Mattel’s rival, Hasbro, will respond.

Did You Know…

that satellite imagery shows Huawei, backed by the Chinese government, is building vast production facilities? The goal: to become China’s homegrown alternative to U.S. chip designer Nvidia and Dutch chip equipment giant ASML.

This article was translated from Dutch and was originally published on Spaarvarkens.be.