Introduction:
A big Swiss bank, Julius Baer, recently made some major moves in the stock market, loading up on media and entertainment shares and reducing its investment in chip stocks. In this article, we will delve into the bank’s latest stock trades, which were disclosed in a form it filed with the Securities and Exchange Commission.
Intel Stock on the Rebound
Intel (INTC) stock had a rough year in 2022, tumbling 49% compared to the S&P 500 index’s 19% drop. However, so far in 2023, shares are up 6.5%, and Julius Baer has taken notice, buying 21,715 more shares to end the fourth quarter with 198,392. Despite the company’s disappointing fourth-quarter report and financial forecasts, showing a decline in PC demand, Julius Baer remains optimistic about the stock’s potential.
Disney Stock Soars Despite Layoffs and Leadership Change
Disney (DIS) stock took a 44% hit in 2022, but this year, shares have soared 26%. Julius Baer purchased 36,617 more Disney shares, ending 2022 with 359,185. Despite CEO Bob Chapek’s warning of layoffs and cost-cutting measures, and his subsequent departure, Julius Baer remains bullish on the company. Activist investor Nelson Peltz’s recent knock on the door of the Magic Kingdom adds another layer of excitement to the stock.
AT&T Stock: Strong Fourth Quarter and High Dividend Security
AT&T (T) stock only slipped 1% in 2022, adjusted for the merger with Discover to form Warner Bros. Discovery (WBD). So far in 2023, shares have gained 8.4%. Julius Baer bought 112,078 additional shares to end 2022 with 759,763. AT&T’s strong fourth quarter, marked by gains in wireless subscribers and a high dividend security, has caught the bank’s attention.
AMD Stock: Focus on Artificial Intelligence
AMD (AMD) stock took a 55% hit in 2022, but this year, shares are up 16%. Julius Baer sold 788,875 AMD shares to slash its investment to 71,364. Despite the company’s weaker-than-expected third quarter, CEO Lisa Su told Barron’s at the beginning of 2023 that AMD was focused on artificial intelligence and believes the company is at an inflection point in this technology.
Conclusion:
Julius Baer’s latest stock trades show a shift in its portfolio towards media and entertainment stocks and away from chip stocks. The bank’s bullish stance on Intel, Disney, and AT&T, despite their challenges, and its reduction in investment in AMD, despite the company’s focus on artificial intelligence, are noteworthy. With Julius Baer managing assets of $470 billion, these stock moves are definitely worth keeping an eye on.
