Dell shares decline; Google’s parent Alphabet climbs on bet by Berkshire Buffett

A personal computer maker came under pressure Monday after an analyst warned of margin headwinds from rising memory chip prices. Meanwhile, shares of a large technology company rose after a high-profile investor disclosed a stake.

Major US stock indexes fell as the new trading week began, ahead of earnings reports from artificial intelligence chip maker Nvidia (NVDA) and several major retailers due in the coming days. The Nasdaq fell by 0.8%, the S&P 500 fell by 0.9%, and the Dow Jones fell by 1.2%. For more Investopedia In today’s markets news, see here.

Several computer manufacturers faced pressure Monday after Morgan Stanley analysts said higher prices for memory components could impact gross margins. Shares of Dell Technologies (DELL) fell more than 8% after the investment firm downgraded the computer and server maker’s shares to “underweight” from “overweight.” Morgan Stanley also downgraded shares of Hewlett Packard Enterprise (HPE) to “underweight” from “equal weight,” and shares of the specialty computer and printer company fell 7%.

Bitcoin (BTCUSD) price continued its recent losing streak, falling to its lowest level since April. Shares of Coinbase Global (COIN), owner of the largest cryptocurrency exchange in the United States, lost about 7%.

Shares of Generac Holdings (GNRC), a provider of backup power generation equipment, also fell about 7%. The stock has been trending lower since Oct. 29, when Generac reported weaker-than-expected third-quarter results. The company indicated that the decrease in power outage rates affected the sales of its residential generators during this period.

Shares of Google parent Alphabet (GOOG, GOOGL) jumped 3% to lead gains in the S&P 500 after a regulatory filing revealed that Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) had acquired a new stake in the tech giant. Additionally, Alphabet’s YouTube TV has reached an agreement with Walt Disney Co. (DIS), putting an end to a carriage dispute that has seen ESPN and other Disney properties removed from the streaming service for several weeks.

Google has also launched AI-powered travel tools designed to help users create personalized itineraries, integrating flight and hotel searches alongside other services like event bookings and restaurant reservations. Operators of competing online travel booking platforms fell, with Expedia Group (EXPE) stock losing nearly 8%. Booking Holdings (BKNG) and TripAdvisor (TRIP) shares also fell.