Warren Buffett just added $28 million worth of this tech stock

Core Viewpoint - Berkshire Hathaway has made significant stock purchases in VeriSign, indicating renewed confidence in the company's fundamentals and long-term growth potential after a period of trimming its holdings [2][9][10]. Group 1: Investment Activity - Berkshire Hathaway's recent investment in VeriSign amounted to $28 million, acquiring approximately 139,930 shares at prices ranging from $194.94 to $201.62 per share [2][3]. - The company first invested in VeriSign in Q4 2012, acquiring 3.69 million shares at an average price of $41.62, and has gradually increased its stake over the years [4][9]. Group 2: Company Fundamentals - VeriSign is a leader in domain registry services, managing .com and .net domains under long-term contracts that extend through 2030 and 2029, respectively, ensuring stable revenue streams [5]. - In Q3 2024, VeriSign reported a 3.8% year-over-year revenue growth to $390.6 million, with net income rising to $201 million and earnings per share increasing from $1.83 to $2.07 [6]. Group 3: Market Performance - VeriSign's stock has outperformed the broader market, gaining 5.79% over the past month compared to the S&P 500 Index's 0.42% rise [6]. - As of the latest data, VeriSign's stock is trading at $202.73, reflecting a 6% gain over the past week and a 13% increase over the last six months, although it remains 4% below its 52-week high of $212 [12]. Group 4: Valuation Metrics - VeriSign's trailing P/E ratio is 23.56, and its forward P/E ratio is 24.11, indicating that the stock is reasonably priced relative to its earnings, supported by consistent profitability and predictable revenue streams [13].