Warren Buffett's Berkshire Hathaway sold $10 billion worth of equities and added only $2.9 billion to existing exposure in Q1 2023, while increasing cash holdings to $130.6 billion. Berkshire Hathaway's operating earnings rose 13% YoY, supported by a recovering insurance business, but the railroad and utility sectors experienced declines. Buffett is shifting away from equities due to attractive treasury yields and remains a fan of Apple. Berkshire Hathaway has no plans to make an offer for complete control of Occidental Petroleum, but may purchase additional stock in the future. Buffett sees the end of an "incredible period" for the U.S. economy and is reducing some exposure to equities, but advises against paying attention to macro forecasts. Berkshire Hathaway stock is slightly underperforming YTD.

SoftBank is selling its remaining shares in Alibaba to reduce exposure to China and raise cash amid a market collapse devaluing its tech investments. The decision is influenced by China's political landscape and tensions between the CCP and SoftBank CEO Masayoshi Son. Alibaba plans to spin off six units to unlock value, indicating a more tech-friendly regulatory framework in China. Based on a Sum-Of-The-Parts Valuation, Alibaba's worth is at least $160 per share, nearly double the current price. The spin-off will create real value and expose BABA to greater upside. The rising middle class in China is expected to drive consumption growth, benefiting Alibaba's operations. Emerging market stocks may be undervalued for years due to various factors, but strong financial performance and solid corporate governance practices can eventually drive up the stock price. SoftBank's sale of Alibaba shares improved sentiment and suggests a more tech-friendly regulatory environment in China.

Lululemon Athletica demonstrates strong financial performance and is poised for continued growth. The company is known for innovative designs, high-quality materials, and sustainable practices in their athletic apparel and accessories. Lululemon's impressive financial performance includes a revenue CAGR above 16% and expanding gross margin. The author's valuation analysis suggests that LULU is currently undervalued, presenting a compelling investment opportunity. The company announced above-consensus revenue and adjusted EPS for Q4 2022 and the full year, and for the first quarter of fiscal 2023, it expects approximately 18% YoY revenue growth to about $1.9 billion. Lululemon's five-year strategic plan aims to achieve $12.5 billion in sales by FY 2026. The author believes the company is undervalued by over 20% and gives it a confident "Buy" rating for long-term investors. However, Lululemon faces risks such as potential disappointment among investors, competition, and potential damage to its reputation from ethical or product quality issues.

Amazon exceeded profit expectations in Q1, but concerns about AWS's sales trajectory slowing QoQ prevented an upside breakout. AWS's slower growth is due to enterprise customers reducing expenses to improve profitability in an uncertain market. Despite this, AWS remains the undisputed leader in the cloud computing industry with an estimated 33% market share and has potential to capitalize on the inevitable adoption of artificial intelligence. The AI market is expected to grow 13-fold between 2022 and 2030, with cloud computing platforms like AWS playing a significant role. Investors should look a decade ahead to realize AWS's potential. Amazon's valuation remains appealing with a sales multiple of 2.0x and total sales still growing in the high single digits, faster than Microsoft, Google, or Alibaba. The author believes that the slowing growth of AWS is not a major issue and investors should consider its long-term growth potential with the adoption of AI.

DoorDash, a food delivery demand aggregator, holds a strong market position in the U.S. and benefits from network effects and intangible assets. The company is expanding into other verticals like grocery, retail, pet stores, and flowers. DoorDash's gross order value increased 27% YoY to $15.9 billion, and its take rate improved to 12.8%. Despite reporting a GAAP operating loss of $171 million, DoorDash generated $428 million of free cash flow during the quarter. The company maintains its number one position in the U.S. as an online food order aggregator and is targeting growth in consumer spending on food and beverages away from home. Bulls argue that DoorDash should quickly reach profitability as consumer behavior shifts away from in-restaurant dining. However, the company faces significant competition from Uber and Grubhub and is susceptible to ESG risks related to data utilization, privacy, security, and gig worker pay and benefits. DoorDash's capital allocation focuses on growth by increasing its presence in additional local markets within the U.S. The analyst sets a price target of $159 (currently $67).

DraftKings, a digital sports entertainment and gaming company, has a BUY rating from analysts who raised the target price to $29 from $22. The legalization of online sports betting in additional states is expected to boost DraftKings' revenue to $3.2 billion in 2023, up from $2.2 billion in 2022. The company reported a reduced loss in 1Q23 and an 84% increase in revenue, with Monthly Unique Payers (MUP) rising 39%. DraftKings has a growth-by-acquisition strategy, acquiring SBTech Ltd. and Golden Nuggets Online Gaming (GNOG), and expects its first profitable quarter in 3Q24. The company's financial strength rating is Medium, but it faces risks from changing consumer spending trends, regulatory developments, competition, and managing betting risk. The revised price target is $29, and as of May 5, BUY-rated DKNG closed at $24.58, up $3.27.

Shopify exceeded revenue and non-GAAP profit expectations in 1Q23, with sales rising in double digits. The company is selling its logistics business to Flexport and cutting its headcount by 20% to focus on making commerce better for its merchant customers at the dawn of the AI era. Despite a post-pandemic slowdown in online sales, Merchant Solutions revenue as a percentage of gross merchandise volume (GMV) continues to grow. Shopify has identified three core focus areas to help merchant customers succeed: expanding from first sale to full scale, going global, and building customer relationships. The company's financial strength rating is High but currently under review due to substantial cash holdings and rapid growth of balance sheet cash in recent years. The author has a BUY rating for SHOP and a 12-month target price of $80, implying a risk-adjusted return greater than their forecast for the broad market.

Lowe's Companies, Inc. has a strong return on capital and aggressive buybacks, leading to EPS and dividend growth. The company expects to outperform the market in 2023 with sales ranging from $88 billion to $90 billion and operating margin in the range of 13.6% to 13.8%. The home improvement and DIY retail sector is expected to experience a CAGR of 4.6% through 2025. Lowe's has seen significant revenue growth and net income rise due to revenue growth and net margin expansions. The company's forward P/E, forward PEG, and forward Price/Cash Flow suggest that it is slightly undervalued. Lowe's has a relatively low level of threat from online shopping and should benefit from the increasing age of houses in the U.S. However, the company may face risks from rising debt and declining annual total equity.

Paramount Global has experienced a price slump and a high short interest, with a dividend cut resulting in a yield of only 1.2%. The company's metrics are affected by the volatile macro environment and investment initiatives, leading to negative earnings in 2023. Q1/23 earnings were stable, with reductions in TV Media and Filmed Entertainment segments compensated by DTC revenue growth. The dividend cut was made to increase flexibility and save $500m annually for debt reduction. Paramount is a conglomerate with assets available for sale, and the dividend cut may be a strategic move to improve bargaining positions with potential buyers. Shareholders could benefit from the dividend cut and potential asset sales, leading to reduced debt and increased cash flow. Assuming little growth and a modest multiple, the equity value of Paramount could increase by 64%. With an improved balance sheet and reduced complexity, Paramount Global could become an acquisition target for other players in the streaming business. The author has initiated a position in Paramount due to the potential margin of safety.

The article is critical of the Brookfield Corporation/Brookfield Asset Manager complex and suggests that investors should buy their favorite listed subsidiaries directly, such as Brookfield Renewable Partners. The author is most bullish on the individual subsidiaries, such as Brookfield Infrastructure Partners, which is a globally diversified owner of infrastructure assets. The company aims to deliver 12-15% returns over time by paying a generous dividend and growing funds from operations by 10%+ annually. The article discusses the risks and opportunities of investing in Brookfield Infrastructure Partners, with the two major risks being acquisition risk and debt. However, the opportunity is that investors can buy a company that has grown FFO per share by 10%+ per year for less than the valuation of the rest of the market. Despite the complexity and debt, as long as the bottom line keeps growing, the result is pretty good if it keeps growing FFO by 10%+ per year. The author discloses ownership of shares but does not provide financial advice.