Investing.com’s stocks of the week

This week saw notable movements among several major stocks: On Holding (ONON) surged over 22% after surpassing earnings expectations and raising its full-year outlook, buoyed by positive analyst sentiment regarding its market position and margin sustainability. Oracle (ORCL) shares declined 6% following investor Michael Burry's concerns about major tech companies, including Oracle, potentially understating depreciation. Conversely, Eli Lilly (LLY) rallied 10.3% due to multiple analyst upgrades and increased price targets, driven by strong prospects for its obesity treatment pipeline. Cisco Systems (CSCO) also rose 4.6% after reporting robust quarterly earnings and strong guidance, attributed to contributions from hyperscaler AI buildout and enterprise network refresh.

Analysis

On Holding (ONON) shares surged over 22% this week, driven by quarterly earnings that topped consensus and a raised full-year outlook, with KeyBanc highlighting its premium market position and margin sustainability into 2026. Eli Lilly (LLY) rallied 10.3% following multiple analyst upgrades and price target hikes, including Citi's $1,500 target implying over 50% upside, on accelerating expectations for its oral GLP-1 drug. Cisco Systems (CSCO) also gained 4.6% after a "healthy beat-and-raise" quarter, benefiting from hyperscaler AI buildout and enterprise network refresh.

Conversely, Oracle (ORCL) shares declined over 6% after investor Michael Burry raised concerns that major tech companies, including ORCL and Meta (META), may be understating depreciation by extending asset useful lives. Burry projects ORCL's earnings could be overstated by 26.9% and META's by 20.8% by 2028, with further details expected on November 25. Berkshire Hathaway also revealed a new $4.3 billion stake in Alphabet (GOOGL) while cutting its Apple (AAPL) position.

The market saw divergent performance, with the S&P 500 and Nasdaq closing slightly higher despite volatility, indicating a focus on company-specific fundamentals. Strong corporate earnings and positive guidance are rewarding companies like ONON, LLY, and CSCO, while accounting concerns from prominent investors are impacting others. This highlights the importance of scrutinizing financial reporting and growth drivers.

Key Decisions for Investors

• Investors should monitor the ongoing execution and analyst sentiment for high-performing companies like ONON, LLY, and CSCO, particularly LLY's GLP-1 pipeline and ONON's margin outlook.
• Evaluate the potential impact of Michael Burry's depreciation concerns on Oracle and Meta, and consider broader accounting risks within the tech sector, especially ahead of his detailed disclosure.
• Assess the implications of Berkshire Hathaway's portfolio adjustments, specifically the new Alphabet stake and reduced Apple position, as a signal of evolving institutional sentiment towards large-cap technology.