Moody's Corp reaches 20-day high amid market strength
Moody's Corp saw a price increase of 4.71%, reaching a 20-day high. This movement coincides with the broader market's positive performance, with the Nasdaq-100 up 0.82% and the S&P 500 up 0.63%.
The stock's rise is attributed to broad market strength, reflecting overall investor confidence in the market. The positive sentiment is likely driven by strong performances in major indices, which have encouraged buying activity across various sectors.
This upward movement in Moody's stock suggests a favorable outlook, as the company continues to benefit from the robust market conditions, potentially attracting more investors and capital inflows.
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New AI Model: Anthropic has developed an artificial intelligence model designed to assist with financial analyses and spreadsheet creation.
Investor Concerns: The introduction of this AI model has raised concerns among investors, suggesting potential challenges for financial research companies.
- Software Stock Decline: The iShares Expanded Tech-Software ETF (NASDAQ:IGV) fell 15% in January, marking its worst month since 2008, as investors fear that AI agents may compress traditional per-user subscription models, indicating concerns over future profitability in software stocks.
- Impact of AI Plugin Launch: The release of Anthropic's Claude Cowork plugins, which focus on automating clerical tasks in legal, analytics, and administrative functions, has driven a swift sell-off in software stocks as investors question the viability of traditional pricing models that rely on enterprise seat counts.
- Data Layer Hit: As software interfaces become cheaper, the market questions the rationale for paying high margins for curated data, leading to a roughly 13% drop in Wolters Kluwer NV (OTC:WTKWY) following the Anthropic news, reflecting broader weakness in legal publishing and data services.
- Market Power Shift: Prediction markets indicate that NVIDIA (NASDAQ:NVDA) maintains a 64% lead in the AI space, but as Alphabet controls the model layer, distribution channels, and cloud infrastructure, a power shift is occurring where budgets may migrate towards firms that own compute and distribution capabilities.
- Berkshire's Cash Reserves: As of the latest quarter, Berkshire Hathaway's cash and cash equivalents totaled $378 billion, representing 36% of the company's total market capitalization, providing a robust foundation for future investments despite a 4% decline in stock price year-to-date.
- Apple's Strong Performance: Apple reported fiscal Q1 revenue of $143.8 billion, a 16% year-over-year increase, with iPhone revenue soaring by 23%, indicating strong market demand, even as its stock has dipped 3% since the start of the year.
- Defensive Investment Portfolio: The combination of Apple and Berkshire not only excels in their respective sectors but also offers a solid balance of offense and defense, effectively mitigating risks amid increasing market volatility.
- Future Growth Potential: Apple's services segment boasted a gross margin of 75.4% in fiscal 2025, expected to drive long-term earnings growth, while Berkshire must carefully manage its substantial cash reserves to ensure effective capital allocation.
- Cash Reserve Advantage: Berkshire Hathaway's cash and short-term Treasury bills total approximately $378 billion, representing 36% of the company's market capitalization, providing new CEO Greg Abel with flexible investment options, especially during market volatility.
- Strong Growth for Apple: Apple's fiscal first-quarter revenue reached $143.8 billion, a 16% year-over-year increase, with iPhone revenue growing by 23%, demonstrating robust performance in the smartphone market, and the company expects to maintain 13% to 16% growth in fiscal Q2.
- Profitability Comparison: Apple's earnings per share rose 19% year-over-year, surpassing social media company Meta, despite Meta's faster revenue growth, indicating Apple's advantage in financial discipline, which may support future earnings growth.
- Balanced Investment Portfolio: With Abel's takeover, the combination of Berkshire and Apple offers investors a balanced investment strategy, as both companies face their own risks, yet their strong market positions and cash flows remain attractive in uncertain market conditions.
- Digital Banking Surge: Nu Holdings has rapidly expanded in Brazil, Mexico, and Colombia, becoming the largest financial institution in Brazil with 61% of the adult population as customers, showcasing its strong appeal and growth potential in the Latin American market.
- Market Expansion Plans: Nu is set to open new offices in the U.S., including Miami, Palo Alto, and Washington, D.C., indicating its strategic focus on international markets and future growth, which is expected to further drive user acquisition.
- Investment Return Comparison: Although Berkshire Hathaway completely exited Nu Holdings by the end of 2024, the company's performance in 2025 has outpaced other top Berkshire stocks, highlighting potential missteps in investment decisions and Nu's robust market performance.
- Sustained Growth Expectations: Nu continues to rapidly add new customers in the Brazilian market, with expectations for higher growth in the coming years, reflecting its competitive advantages and market opportunities in the digital banking sector.
- Buffett's Exit: Warren Buffett completely sold his stake in Nu Holdings at the end of 2024, despite the company becoming Brazil's largest financial institution, indicating a potential missed opportunity for Berkshire Hathaway to capitalize on future gains in a rapidly growing market.
- Strong Market Performance: Following Berkshire's divestment, Nu's stock outperformed all other Buffett holdings in 2025, already up 11% at the start of the year, highlighting its robust growth potential in the competitive fintech landscape.
- User Base Expansion: Over the past decade, Nu Holdings has rapidly grown to become the largest financial institution in Brazil, with 61% of the adult population on its platform, and penetration rates of 14% in Mexico and 10% in Colombia, showcasing its significant influence in the Latin American market.
- New Market Plans: Nu is set to open offices in the U.S., including Miami, Palo Alto, and Washington, D.C., further expanding its market share and expected to drive future growth, although it carries a higher risk profile compared to traditional Buffett investments.











