10 Stocks That Will Bounce Back According To Hedge Funds

8. Mobileye NV (NYSE:MBLY)

Year-To-Date Loss: 57.64%

Number of Hedge Fund Investors In Q3 2024: 33

Mobileye NV (NYSE:MBLY) is an Israeli firm that develops autonomous driving technology. Its products make it unsurprising that the shares are down 59.6% year-to-date. The share price drop is due to a slowdown in the electric vehicle industry which has also impacted other sectors such as lithium mining. Global EV demand has slowed down amidst high interest rates and inflation. As a result, Mobileye NV (NYSE:MBLY) has seen slowing sales, which has also led it to shut down its LiDAR development unit earlier this year. The firm’s hypothesis depends on its industry partnerships through which it sells its autonomous driving system. Mobileye NV (NYSE:MBLY) benefits from key competitive advantages such as its products enabling assisted driving at speeds greater than 100 kmh. It also scored a win in November by inking a deal with Lyft for robotaxi fleets.

Baron Funds mentioned Mobileye NV (NYSE:MBLY) in its Q3 2024 investor letter. Here is what the fund said:

“Shares of Mobileye Global Inc. (NASDAQ:MBLY), a provider of ADAS and autonomous driving technologies for the automotive industry, detracted from performance. Excess inventory among key customers proved to be a headwind to growth earlier in the year. Mobileye also experienced a significant decline in market share in China as local original equipment manufacturers shifted to domestic suppliers and in-house technology. Although this was an embedded risk, it materialized faster than expected and included market share losses at key customers. While we maintain our belief in the size and strategic importance of the autonomous vehicle market (see Tesla above), we decided to exit our Mobileye position during the quarter and book a tax loss.”