$COF

Berkshire Hathaway reduced its stake in Capital One by 58% in Q2 2026, according to its 13F filing. The company cut its position from 7.15 million to 3 million shares. Capital One, which has a high growth score, saw its stock fall 12.61% year-to-date. Meanwhile, Third Point LLC increased its stake in Capital One, citing strong earnings.

Over 100 companies, including OpenAI, Google, and major banks, warn of increasing AI-powered cyberattacks. They urge governments to fund defensive AI for critical infrastructure and request responsible AI access for defenders. Recent incidents include AI systems being used as attack tools and vulnerabilities found by AI models like Anthropic's Mythos. The AI Kill Switch Act is being considered in Congress.

Federal Reserve research shows credit card balances 90 days late nearly doubled since 2022, but new delinquencies remain stable. Capital One (3.13%), Synchrony (4.16%), and Bread Financial (5.25%) reported lower 30-day delinquency rates in Q2 2026. The Fed notes lenders may be reporting delinquent debts longer, inflating 90-day rates.

Berkshire Hathaway (BRK.A, BRK.B) shifted to net stock buying in Q2 2026, contrasting Warren Buffett's cash-hoarding stance. Under Greg Abel, it bought Alphabet ($17B), Delta ($1.64B), Lennar ($273M), and Macy's ($101M), while selling Bank of America ($1.7B) and others. Buffett still views the market as overvalued, per a May CNBC interview.

Goldman Sachs identified six stocks, including SpaceX (SPCX), Boeing (BA), Capital One (COF), Mastercard (MA), Thermo Fisher (TMO), and Visa (V), that are overweighted by both hedge funds and mutual funds. These stocks have outperformed the S&P 500 by 29% this year, according to Goldman's analysis. SpaceX trades at 93 times next year's estimated earnings and is a dominant player in reusable rockets and satellite internet.

Investors are increasingly favoring financial sector stocks, with hedge funds and mutual funds showing the highest buying levels in years, according to Goldman Sachs. Strong Q2 earnings have driven this trend, though performance in 2026 has been mixed. Key stocks include Capital One, Corpay, Fiserv, and Interactive Brokers, with shared favorites like Mastercard and Visa also highlighted.

Hedge funds and mutual funds both added shares of Bloom Energy, Flex, and Seagate Technology last quarter, per Goldman Sachs. Mutual funds bought AMD, Micron, and SanDisk, while hedge funds sold them. Both groups also increased exposure to 12 AI infrastructure stocks. Hedge funds bought Microsoft and Amazon, while mutual funds sold them. Goldman's data covers 991 hedge funds and 504 mutual funds.

Capital One Financial (COF) announced the redemption of its Series M preferred stock by September 1, 2026. The company's share price has shown mixed returns, with a 12.11% YTD decline but a 126.34% 3-year total return. Analysts debate whether COF is undervalued, with a fair value estimate of $257.90 compared to its last close at $217.91, citing growth and profitability assumptions. The company's P/E ratio of 13.6x is compared to industry and peer averages, highlighting potential valuation risks

Capital One (COF) reported mixed July data, with healthy credit trends but slower domestic card portfolio growth. Bank of America analyst Mihir Bhatia maintained a Buy rating and $253 price target, citing solid credit performance. COF's card loans grew 1.92% YoY, down from June's 2.58%. The company is integrating Discover, acquired in May 2025, with CEO Richard Fairbank reporting progress. Q2 net income was $3 billion, and revenue increased 4% sequentially to $15.9 billion.

Berkshire Hathaway (BRK-B) increased its stock portfolio value to $299B in Q2, adding D.R. Horton (DHI) and boosting stakes in Alphabet (GOOG), Delta Air Lines (DAL), Lennar (LEN.B), New York Times (NYT), and Macy’s (M). It reduced holdings in Bank of America (BAC), Kroger (KR), Ally Financial (ALLY), and Capital One Financial (COF).