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Gap pulls plug on Old Navy spinoff in midst of declining sales – Canoe

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Gap Inc on Thursday scrapped its plan to spinoff Old Navy and said it would instead work to stem dropping sales, while fewer discounts during the holiday season helped full-year earnings, sending its shares up about 4%.

The move came as a surprise as just two months ago the company had stuck to its plan to separate despite several analysts calling for the strategy to be canned due to weak sales and the abrupt exit of Chief Executive Officer Art Peck.

Peck unveiled the plan in February last year when Old Navy was a bright spot for the company, which was struggling with out-of-fashion apparel at its Gap brand.

However, sales for Old Navy have slowed in recent quarters, raising doubts about the brand’s value as a separate entity.

“Old Navy’s business has not been good. With the CEO out of the way, this is the right move,” said Jane Hali, at research firm Jane Hali & Associates.

“Instead of thinking of spinning off companies, they should get back to the basics of giving customers what they’re asking for.”

The company on Thursday also said that Mark Breitbard, head of Banana Republic, will lead the Gap brand on interim basis after the departure of Chief Executive Officer Neil Fiske.

“The work we’ve done to prepare for the spin shone a bright light on operational inefficiencies and areas for improvement,” Gap interim CEO Robert Fisher said.

The company is searching for a permanent CEO, whose primary task, according to Craig Johnson, president at retail consultancy Customer Growth Partners, will be to fix the big three brands – Gap, Old Navy and Banana Republic.

“Launching an independent Navy when none of the big brands is ready for prime time would be a bridge too far,” he said.

Gap said same-store sales for 2019 would be at the higher end of its prior outlook, but would still drop from a year earlier as brick and mortar retailers lose holiday shoppers to online competition.

It forecast adjusted 2019 earnings to be moderately above its prior outlook of $1.70 to $1.75 per share.

Gap shares were up at $19.44 in extended trading.

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Huge news: Warren Buffett got an iPhone – Mashable

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Nothing will ever be the same again.

Nothing will ever be the same again.
Image: Daniel Zuchnik/WireImage

“Human sacrifice! Dogs and cats living together! Mass hysteria!”

The unthinkable has happened: After years of using a bargain bin flip phone, billionaire and famous Apple investor Warren Buffett acquired an iPhone. The Berkshire Hathaway CEO made the stunning admission on CNBC’s “Squawk Box” on Monday morning, reversing one of his most old-school lifestyle choices.

Specifically, he said he’s using an iPhone 11. Buffett indicated he’d been given iPhones before, including from Apple CEO Tim Cook. There’s just one crucial bit of context that’s missing. Is it an iPhone 11? Or an iPhone 11 Pro or iPhone 11 Pro Max?

Seriously, we have to know if he’s into the iPhone 11 Pro’s distinctive triple-camera system, or if the high-quality performance of the regular iPhone 11 is enough for him. Based on his interview with CNBC, it’s safe to assume he doesn’t care; Buffett said he mostly just uses it to make phone calls.

Prior to this monumental paradigm shift, Buffett used an old flip phone called the Sony SCH-U320. You can get one for less than $30. (Forbes says Buffett is worth around $88 billion.) The fact that he held out for so long despite Berkshire Hathaway owning more than 5 percent of Apple is impressive.

It’s a good thing someone got an iPhone in his hands because otherwise he might have fallen prey to the recent revival of flip phones in the form of foldables. Even if he can afford its steep $1,500 price point, nobody deserves to be stuck with the new Razr

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Stock market news live: Wall Street dives on coronavirus panic, stocks have worst day in 2 years – Yahoo Canada Finance

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="World markets got slammed on Monday, with investors unnerved by rising coronavirus concerns. An unexpected surge in confirmed infections within Italy and South Korea — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic.” data-reactid=”15″>World markets got slammed on Monday, with investors unnerved by rising coronavirus concerns. An unexpected surge in confirmed infections within Italy and South Korea — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4:15 p.m. ET: Shake Shack swoons after Q4 earnings” data-reactid=”17″>4:15 p.m. ET: Shake Shack swoons after Q4 earnings

FILE - In this April 15, 2015, file photo, a man walks out of a Shake Shack in front of the New York-New York hotel and casino in Las Vegas. Shake Shack reports financial results Wednesday, Aug. 10, 2016. (AP Photo/John Locher, File)

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FILE – In this April 15, 2015, file photo, a man walks out of a Shake Shack in front of the New York-New York hotel and casino in Las Vegas. Shake Shack reports financial results Wednesday, Aug. 10, 2016. (AP Photo/John Locher, File)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shake Shack’s fourth quarter earnings report is leaving investors hungry for more. The burger chain lost 6 cents per share and reported big jumps in quarterly revenue on relatively light sales, but its stock tumbled sharply in post-market trading after it gave guidance below Wall Street estimates.” data-reactid=”38″>Shake Shack’s fourth quarter earnings report is leaving investors hungry for more. The burger chain lost 6 cents per share and reported big jumps in quarterly revenue on relatively light sales, but its stock tumbled sharply in post-market trading after it gave guidance below Wall Street estimates.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shake Shack’s (SHAK) stock plunged by nearly 11% from Monday’s close at $73.57, but have rallied 24% since 2020 began.” data-reactid=”39″>Shake Shack’s (SHAK) stock plunged by nearly 11% from Monday’s close at $73.57, but have rallied 24% since 2020 began.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="4:00 p.m. ET: Stocks walloped by coronavirus outbreak” data-reactid=”41″>4:00 p.m. ET: Stocks walloped by coronavirus outbreak

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wall Street suffered its worst losses in 2 years on Monday, as fears of a global coronavirus pandemic forced investors out of stocks and into safe-havens like the dollar, gold and Treasuries. All of the Dow’s (^DJI) gains for 2020 have evaporated amid the volatility, which is unlikely to abate after an eruption of new infections outside of China.” data-reactid=”46″>Wall Street suffered its worst losses in 2 years on Monday, as fears of a global coronavirus pandemic forced investors out of stocks and into safe-havens like the dollar, gold and Treasuries. All of the Dow’s (^DJI) gains for 2020 have evaporated amid the volatility, which is unlikely to abate after an eruption of new infections outside of China.

Here’s where markets settled at the close:

  • S&P 500 (^GSPC): -3.35%, or -111.86 points to 3,225.89

  • Dow (^DJI): -3.56%, or -1,031.40 points to 27,961.01

  • Nasdaq (^IXIC): -3.71%, or -355.31 points to 9,221.28

  • Crude oil (CL=F): -3.95% or -$2.11 to 51.27

  • Gold (GC=F): +0.73% or $12.00 to 1,660.80

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="3:23 p.m. ET: Key pharma stocks hit by opioid fears” data-reactid=”54″>3:23 p.m. ET: Key pharma stocks hit by opioid fears

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Monday has been a bad day for pharma giants ensnared in opioid legal action. Mallinckrodt (MNK) crumbled by a whopping 40% at its lows, after a Wall Street Journal report that the company may be preparing for the bankruptcy of its U.S. generics unit, which is in the crosshairs of opioid lawsuits. Separately, Teva (TEVA) — another opioid maker — dropped by over 4%, in part because of a “sell” recommendation by Edward Jones.” data-reactid=”55″>Monday has been a bad day for pharma giants ensnared in opioid legal action. Mallinckrodt (MNK) crumbled by a whopping 40% at its lows, after a Wall Street Journal report that the company may be preparing for the bankruptcy of its U.S. generics unit, which is in the crosshairs of opioid lawsuits. Separately, Teva (TEVA) — another opioid maker — dropped by over 4%, in part because of a “sell” recommendation by Edward Jones.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:15 p.m. ET: Pandemic jitters send Europe to its worst day in 3 years” data-reactid=”57″>1:15 p.m. ET: Pandemic jitters send Europe to its worst day in 3 years

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="European stocks suffered their worst day since 2016 on Monday as coronavirus infections climbed in Italy, the eurozone’s third-largest economy.” data-reactid=”58″>European stocks suffered their worst day since 2016 on Monday as coronavirus infections climbed in Italy, the eurozone’s third-largest economy.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The pan-European STOXX 600 index (^STOXX) closed down by almost 3.8%, with stocks on Italy’s FTSE MIB Index (FTSEMIB.MI) sinking by more than 5.4%. The FTSE 100 (^FTSE) declined by more than 3.3% in London. Germany’s DAX (^GDAXI)&nbsp;was down by 4%, while France’s CAC 40 (^FCHI)&nbsp;was down by more than 3.9%.” data-reactid=”59″>The pan-European STOXX 600 index (^STOXX) closed down by almost 3.8%, with stocks on Italy’s FTSE MIB Index (FTSEMIB.MI) sinking by more than 5.4%. The FTSE 100 (^FTSE) declined by more than 3.3% in London. Germany’s DAX (^GDAXI) was down by 4%, while France’s CAC 40 (^FCHI) was down by more than 3.9%.

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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Noon ET: Stocks take new leg lower; travel and leisure lead the rout” data-reactid=”61″>Noon ET: Stocks take new leg lower; travel and leisure lead the rout

United Airlnes and American Airlnes planes are shown on the tarmac from an outdoor terrace and observation deck at San Francisco International Airport in San Francisco, Thursday, Feb. 20, 2020. (AP Photo/Jeff Chiu)United Airlnes and American Airlnes planes are shown on the tarmac from an outdoor terrace and observation deck at San Francisco International Airport in San Francisco, Thursday, Feb. 20, 2020. (AP Photo/Jeff Chiu)

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United Airlnes and American Airlnes planes are shown on the tarmac from an outdoor terrace and observation deck at San Francisco International Airport in San Francisco, Thursday, Feb. 20, 2020. (AP Photo/Jeff Chiu)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="All of Wall Street’s major benchmarks are hunkered near session lows on coronavirus selling, with airlines and other leisure stocks bearing the brunt of selling. Some of the sector’s prominent names, like American Air (AAL), Norwegian Cruise (NCLH), Delta (DAL), Carnival (CCL), Royal Caribbean (RCL) and Booking.com, are off by at least 7% on the day. Travel and leisure has long been seen as most vulnerable to the pathogen (the Diamond Princess fiasco a prime illustration of why).” data-reactid=”82″>All of Wall Street’s major benchmarks are hunkered near session lows on coronavirus selling, with airlines and other leisure stocks bearing the brunt of selling. Some of the sector’s prominent names, like American Air (AAL), Norwegian Cruise (NCLH), Delta (DAL), Carnival (CCL), Royal Caribbean (RCL) and Booking.com, are off by at least 7% on the day. Travel and leisure has long been seen as most vulnerable to the pathogen (the Diamond Princess fiasco a prime illustration of why).

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:25 a.m. ET: Why Apple, tech stocks are sinking” data-reactid=”83″>11:25 a.m. ET: Why Apple, tech stocks are sinking

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For Apple (AAPL) and several other tech bellwethers, the heavy reliance on China (both from a demand and supply perspective) are an albatross as coronavirus fears crimp the global supply chain.” data-reactid=”84″>For Apple (AAPL) and several other tech bellwethers, the heavy reliance on China (both from a demand and supply perspective) are an albatross as coronavirus fears crimp the global supply chain.

In a note to clients on Monday, D.A. Davidson cited the iPhone maker as the biggest loser in the current environment. Analyst Tom Forte told Yahoo Finance in an interview that Grubhub and Netflix could benefit, as homebound citizens order in and binge on television.

The firm also listed the following as having “significant risk”:

In late morning trading, Apple dived by 4% to trade around $300 per share, while Facebook slumped by nearly 5%.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="11:00 a.m. ET: Stocks pull off troughs, still sharply lower” data-reactid=”100″>11:00 a.m. ET: Stocks pull off troughs, still sharply lower

Wall Street has clawed off session lows, but indexes remain well underwater as traders aggressively price in a worsening of the coronavirus outbreak. Here’s where major benchmarks are currently:

  • S&P 500 (^GSPC): -2.69% or -89.92 points to 3,247.83

  • Dow (^DJI): -2.79%, or -808.98 points to 28,183.43

  • Nasdaq (^IXIC): -3.31% or -316.59 points to 9,260.00

  • Crude oil (CL=F): -4.40% to $51.03 a barrel

  • Gold (GC=F): +1.77% to $1,678 per ounce

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:50 a.m. ET: Italy, already reeling, takes new blow from virus outbreak” data-reactid=”109″>10:50 a.m. ET: Italy, already reeling, takes new blow from virus outbreak

Via Reuters, Italy — a G7 economy that’s seen sluggish (if nonexistent) growth for much of the last decade, is all but certain to take another hit from the coronavirus’ appearance there. Over 220 people have been infected since Friday with six dead.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="From the story:” data-reactid=”111″>From the story:

The euro zone’s third-largest economy has been the most sluggish in the 19-nation bloc since the start of monetary union. It shrank by 9% in the wake of the 2008 global financial crisis and has recovered only about half of that since then.

Italian GDP fell by 0.3% in the fourth quarter of last year from the previous three months, yielding full-year growth of just 0.2%. Economists expected it to fare little better this year — and that was before the coronavirus hit.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:15 a.m. ET: WHO on coronavirus pandemic: ‘Not yet’” data-reactid=”119″>10:15 a.m. ET: WHO on coronavirus pandemic: ‘Not yet’

In its daily update, the World Health Organization’s director general made a distinction between the coronavirus being a contagious epidemic and a full-fledged pandemic:

“Our decision about whether to use the word “pandemic” to describe an epidemic is based on an ongoing assessment of the geographical spread of the virus, the severity of disease it causes and the impact it has on the whole of society.

“For the moment, we are not witnessing the uncontained global spread of this #coronavirus, and we are not witnessing large-scale severe disease or death. Does this virus have pandemic potential? Absolutely. Are we there yet? From our assessment not yet.”

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile, The White House may seek up to $1 billion to prevent the virus from worsening in the United States.” data-reactid=”123″>Meanwhile, The White House may seek up to $1 billion to prevent the virus from worsening in the United States.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:14 a.m. ET: How the coronavirus will affect the global economy” data-reactid=”125″>10:14 a.m. ET: How the coronavirus will affect the global economy

Suppliers are already seeing delivery times soar because of the epidemic that's crippled China.Suppliers are already seeing delivery times soar because of the epidemic that's crippled China.

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Suppliers are already seeing delivery times soar because of the epidemic that’s crippled China.

Goldman Sachs took a knife to its U.S. estimates, shaving 0.2 percentage points off estimated Q1 GDP given the widening coronavirus outbreak. The bank warns that “risks are clearly skewed to the downside” in light of supply chain troubles, and will be felt in the following four ways:

The impact of the coronavirus on US growth is likely to come from four main channels, namely 1) reduced US goods exports to China, 2) reduced spending in the US by Chinese tourists and students, 3) a decline in US retailers’ services value added through lower US consumption of imported goods, and 4) a decline in US production due to supply chain production disruptions. The first two channels reduce output through lowering demand, while the latter two channels reduce output through a reduction in supply. 

In a separate note, Goldman cited evidence that suggested the virus’s spread “is likely having a somewhat gradual but still sizeable impact on macro data.”

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:50 a.m. ET: Expect cheaper energy prices until 2025: BofA” data-reactid=”151″>9:50 a.m. ET: Expect cheaper energy prices until 2025: BofA

The upside of the coronavirus crisis will be sharply lower energy prices, with the hit to global demand expected to keep crude depressed, according to Bank of America. In a research note to clients on Monday, analysts said they expect Brent to range-trade between $50 and $70 until 2025:

As prices become more anchored around $60, we believe volatility implied in oil options could trend lower in the medium term. In contrast to last year, we see more support to our price outlook on increased capital discipline across the US shale industry, despite coronavirus risks. Our projections assume OPEC+ is prepared to continue to lose share in the global oil market, particularly if pandemic risks rise again.

More broadly, we expect oil as a share of the global energy pie to will drop as well as the petroleum consumption mix keeps rotating away from gasoline and heavy ends into distillates and NGLs (natural gas liquids).

The bank also expects the oil market to need additional production cuts this year amid “modest” demand that will keep Brent averaging $62 per barrel in 2020.

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:30 a.m. ET: Wall Street plunges at the opening bell” data-reactid=”157″>9:30 a.m. ET: Wall Street plunges at the opening bell

The escalating coronavirus crisis is taking a huge toll on financial markets. The bloodletting that started on Sunday with stock futures and continued through Asia and European session has now hit U.S. blue-chip and tech stocks. Some of the day’s biggest losers include bellwether names like Apple, Google and Tesla — all of which fell by around 5% on the day.

Here’s where the markets began Monday’s trading session, which is shaping up to be an ugly one:

  • S&P 500 (^GSPC): -3% or -100 points to 3,237.52

  • Dow (^DJI): -3.2% or -918.19 points to 28,074.13

  • Nasdaq (^IXIC): -3.52% or -336.76 points to 9,245.73

  • Crude oil (CL=F): -4.72% to $50.86 a barrel

  • Gold (GC=F): +2.18% to $1,684.70 per ounce

Analysts, however, don’t think the current drop will last. Invesco’s Brian Levitt told Yahoo Finance on Monday that the current scare is little more than a blip in a longer secular bull that won’t trigger a recession. “We will be back sometime later in this year talking about stabilizing economic activity.”

7:30 a.m. ET: Stock futures slump in early trading

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. stock futures appeared poised to extend last week’s losses, with each of the three major indices indicating a lower open as Wall Street grappled with the widening coronavirus crisis.” data-reactid=”174″>U.S. stock futures appeared poised to extend last week’s losses, with each of the three major indices indicating a lower open as Wall Street grappled with the widening coronavirus crisis.

Here’s were the main moves during the pre-market session, as of 7:30 a.m. ET:

  • S&P 500 futures (ES=F): 3,265.00, down 74.25 points or 2.22%

  • Dow futures (YM=F): 28,293, down 688.00 points or 2.37%

  • Nasdaq futures (NQ=F): 9,222.25, down 235.75 points or 2.49%

  • Crude oil (CL=F): $51.39 per barrel, down $1.99 or 3.73%

  • Gold (GC=F): $1,682.50 per ounce, up $33.70 or 2.04%

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="An unexpected surge in confirmed infections within South Korea and Italy — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic. Last week, the Hubei province at the epicenter of the coronavirus outbreak revised its method of counting cases for the third time this month, further undermining confidence in the country’s official counts.” data-reactid=”182″>An unexpected surge in confirmed infections within South Korea and Italy — which now has the largest cluster of cases outside of China — raised the possibility that the mystery virus could be mutating into a pandemic. Last week, the Hubei province at the epicenter of the coronavirus outbreak revised its method of counting cases for the third time this month, further undermining confidence in the country’s official counts.

It raises the stakes for the entire global economy rather than just China, where the overwhelming majority of the world’s nearly 80,000 cases are located. According to Marc Chandler at Bannockburn Global Forex:

The [coronavirus] has not only crippled the Chinese economy, but its sheer size and magnitude of its integration in the global supply chains have far-reaching knock-on effects.  Asia-Pacific economies that were increasingly reliant on Chinese input and demand are the most vulnerable.  Estimates suggest that the world’s second-largest economy is operating well less than 50% of capacity. 

Indeed, the extension of the stoppages and disruptions increase the likelihood that the Chinese economy contracts in Q1 [and] The supply chain disruptions are adversely impacting Japanese and Korean automakers.  German automakers derived a substantial share of their profits from China, and car sales continue to weaken. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The virus is sending ripples across the global supply chain, with names like Volkswagen, Burberry, Starbucks and Apple among the growing list of multinationals whose operations are being adversely impacted by the outbreak.” data-reactid=”186″>The virus is sending ripples across the global supply chain, with names like Volkswagen, Burberry, Starbucks and Apple among the growing list of multinationals whose operations are being adversely impacted by the outbreak.

Numbers showing the state of the Dow Jones Industrial Average are displayed above the floor after the closing bell at the New York Stock Exchange (NYSE) in New York City, U.S., February 21, 2020. REUTERS/Andrew KellyNumbers showing the state of the Dow Jones Industrial Average are displayed above the floor after the closing bell at the New York Stock Exchange (NYSE) in New York City, U.S., February 21, 2020. REUTERS/Andrew Kelly

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Numbers showing the state of the Dow Jones Industrial Average are displayed above the floor after the closing bell at the New York Stock Exchange (NYSE) in New York City, U.S., February 21, 2020. REUTERS/Andrew Kelly

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Follow Yahoo Finance on&nbsp;Twitter,&nbsp;Facebook,&nbsp;Instagram,&nbsp;Flipboard,&nbsp;LinkedIn, and&nbsp;reddit.” data-reactid=”208″>Follow Yahoo Finance on TwitterFacebookInstagramFlipboardLinkedIn, and reddit.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Find live stock market quotes and the latest business and finance news” data-reactid=”209″>Find live stock market quotes and the latest business and finance news

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Despite Lunch with Sun, Buffett Still Denies Bitcoin's Legitimacy – Crypto Briefing

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Warren Buffett remains skeptical about cryptocurrencies despite on-chain analytics revealing parabolic growth and industry leaders’ best attempts.

Cryptocurrencies Have “Zero” Value, Says Buffett

Justin Sun, the CEO of TRON and BitTorrent, spent $4.6 million in a charity auction to have lunch with the head of Berkshire Hathaway, Warren Buffett. 

The main idea behind winning the charity auction was to persuade the legendary investor to reconsider his bearish take on cryptocurrencies. 

During the meal, Sun reportedly gave Buffett his first Bitcoin and a smartphone with over 1.9 million TRON tokens, as well as other digital assets, including BitTorrent, WINK, and USDT-TRC20—all projects on the TRON blockchain. 

Despite the massive sum of money that Sun spent, it now appears that the effort was in vain. 

In a recent interview with CNBC, Buffett described the meet up as a “very friendly exchange of ideas.” Buffett explained that Sun was not able to change his perception and affirmed that “cryptocurrencies basically have no value.” 

“Cryptocurrencies do not produce anything. You can look at your little ledger item for the next 20 years and it says that you have X of this cryptocurrency, or that. It does not reproduce, it does not deliver, it cannot mail you a check, it cannot do anything. And, what you hope is that somebody else comes along and pays you more money for it later on, but then that person has the problem. But, in terms of value, you know zero,” said Buffett. 

The American business magnate also denied owning any cryptocurrency when asked multiple times about the tokens that Sun gave him and asserted that he will never own any. According to Buffett, cryptocurrencies were invented to make it easier to “move around a fair amount of money illegally.” 

Although the sage of Omaha remains skeptical about the future of cryptocurrencies, there are others who seem overwhelmingly bullish. 

Mass Adoption Is Happening “Now” 

On-chain analyst Willy Woo, recently stated that Bitcoin is going through exponential growth.

Due to human nature’s instinct to look at “things in a linear stance,” it is difficult to understand what the flagship cryptocurrency is doing outside of this perspective.

“If you were to look at where we are on the adoption curve, we are at 1% of the world population holding this asset class. And, if you look at the rate in which that is growing, which is 2x every year… and 4x on a bull market. If you run those numbers, we are going to have half of the world using [cryptocurrencies] within the next seven years,” said Woo. 

While it is unknown what the future holds for cryptocurrencies, Woo maintains that mass adoption is happening now based on on-chain data. Only time will tell whether cryptos will triumph or fail as a speculative bubble. 

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