The article compares eBay and Macy's as consumer stocks for 2026. eBay operates a capital-light global marketplace focused on niche categories with strong margins (18.3% net margin), but faces legal risks from cyberstalking lawsuits and competition from AI-powered search tools. Macy's is undergoing a turnaround strategy with lower profitability (2.8% net margin) and vulnerability to consumer spending shifts. The author concludes neither stock is an attractive investment due to their respective risk profiles.

Greg Abel, Berkshire Hathaway's new CEO, purchased 3 million shares of Macy's in his first quarter, marking the company's first investment in the department store retailer. Macy's trades at a P/E ratio of 10 and offers a 3% dividend yield. The company showed strong Q1 performance with 3% comparable sales growth, particularly driven by its luxury brands Bloomingdale's and Bluemercury. While the stock appears cheap, the article questions whether it represents a true value investment aligned with Berkshire's long-term philosophy.

Berkshire Hathaway has been quietly accumulating shares of Macy's despite being a net seller of stocks overall. The retailer trades at a low 10 P/E ratio and appears undervalued when considering its substantial real estate holdings worth an estimated $9 billion against a market cap of $6.7 billion. Macy's has shown signs of recovery with its strongest Q1 in four years and positive sales growth guidance, while maintaining a sustainable 3% dividend yield.

Macy's reported its strongest Q1 in 4 years with 2% revenue growth and 3% comparable sales increase. The retailer's turnaround strategy includes closing underperforming stores, expanding luxury brands Bloomingdale's and Blue Mercury, and reimagining 200 store locations. The company raised its full-year guidance, and Berkshire Hathaway recently opened its first-ever position in Macy's, citing the stock's attractive valuation at 9x earnings.

Berkshire Hathaway invested $55 million in Macy's in Q1 2026, seeing value in the struggling department store despite its significant decline over the past decade. While Macy's has lost 75% of its market value since 2015 and closed hundreds of stores, recent Q1 2026 earnings showed strong improvements with revenue beating expectations and comparable sales growth of 3% YOY. The company's 'Reimagine' initiative to revamp stores is showing positive results, though Wall Street remains cautiously pessimistic with a consensus price target implying 10% downside.

Macy's delivered a strong Q1 2026 with adjusted earnings of 13 cents per share (beating expectations of 2 cents) and revenue of $4.89 billion (topping estimates of $4.61 billion). The company raised its full-year outlook citing broad-based growth across all brands including Bloomingdale's (comps +10.2%), Macy's nameplate (+1.6%), and Bluemercury (+6.4%). Despite the positive results, Wall Street's reaction was muted with shares closing up just 0.4%, as analysts remain cautious with a consensus Reduce rating and average price target 15% below current levels.

The S&P 500 closed at a record 7,609.78 on Tuesday, gaining 0.13% and extending its nine-week rally driven by AI strength. However, Polymarket traders predict a weaker open on Wednesday with 47% probability of a higher open. Geopolitical tensions from U.S.-Iran military actions and upcoming economic data (ADP payrolls, durable goods) will influence market direction. S&P 500 futures were trading slightly lower early Wednesday, down 0.10%.

Greg Abel, Berkshire Hathaway's new CEO, sold the company's entire 5.1 million-share stake in UnitedHealth Group in Q1 2026 as part of portfolio spring cleaning. While UnitedHealth shares have rallied over 40% since the sale, the author argues Abel made the right call given the stock's valuation risks and the company's ongoing turnaround challenges. Berkshire also exited positions in Amazon, Domino's, Mastercard, and Visa while increasing stakes in Alphabet and adding new positions in Delta Airlines and Macy's.

Greg Abel, the new CEO of Berkshire Hathaway, has opened a position in Macy's as part of his first 13F filing. The department store is trading at a cheap valuation of 8x trailing earnings with a 3.58% dividend yield, and is executing a turnaround strategy under new CEO Tony Springs that focuses on high-performing locations and omnichannel retail. However, Wall Street expects earnings to decline this year, raising concerns about whether the stock is a value trap.

Berkshire Hathaway's new CEO Greg Abel made significant portfolio changes in Q1, reducing holdings from 39 to 26 stocks and dumping positions in Amazon, Visa, and Mastercard. Abel's largest new investments were in Delta Air Lines ($2.6B) and Macy's ($55M)—both industries where Buffett has acknowledged past mistakes. However, Abel's biggest move was a $10B increase in Alphabet, which the author views favorably. The analyst expresses concern about most of Abel's moves outside of Alphabet.

Berkshire Hathaway completely exited its Amazon position in Q1 2026, selling its remaining shares after holding 10 million shares in September 2025. The company simultaneously initiated a new position in Macy's, purchasing nearly 1.7 million shares valued at $30.1 million. The move reflects a shift toward Macy's attractive valuation and growth potential despite broader economic concerns.

Dillard's reported strong Q1 earnings of $16.04 per share, beating expectations by $5.91, but the rally quickly faded as investors realized $5.10 per share came from a litigation settlement. The stock surged to $593 in premarket trading but ended only 0.4% higher as investors reassessed valuations after a 270% five-year run. Wall Street remains cautious with two Sell and three Hold ratings, citing concerns about underlying growth and forward guidance.