In this article, we discuss the 5 stocks losing ground on Monday. If you want to see some more stocks declining today, go directly to 10 Stocks Losing Ground on Monday.
5. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 41
Shares of Canadian National Railway Company (NYSE:CNI) slipped over two percent this morning after receiving a downgrade from Evercore ISI. The research firm lowered its ratings for the freight transportation services provider from “Outperform” to “In Line.”
Evercore ISI analyst Jonathan Chappell said the recent volume growth trends of Canadian National Railway Company (NYSE:CNI) have moved down. Chappell also thinks that the company’s full-year outlook range is slightly at risk. He has set a price target of $129 per share for Canadian National Railway Company (NYSE:CNI).
4. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 46
Shares of Ford Motor Company (NYSE:F) declined over five percent after the opening bell on Monday after a jury imposed a penalty of $1.7 billion on the Michigan-based automaker over an accident involving its heavy-duty truck.
The plaintiffs filed a court case against Ford Motor Company (NYSE:F), saying the weak roof quality of the 2002 Ford F-250 resulted in the death of their parents. Following the verdict, Ford plans to file an appeal, seeking to limit the fine amount.
Meanwhile, Ford Motor Company (NYSE:F) just confirmed that it is trimming nearly 3,000 jobs, primarily in the U.S. and Canada. The latest cuts are a part of its EV restructuring plan announced earlier this year.
3. Applied Materials, Inc. (NASDAQ:AMAT)
Number of Hedge Fund Holders: 67
Shares of Applied Materials, Inc. (NASDAQ:AMAT) slipped over three percent in mid-day trading Monday after Citi lowered its price target for the materials engineering solutions provider from $160 per share to $150 per share.
The price-target cut came just a few days after Applied Materials, Inc. (NASDAQ:AMAT) announced its fiscal fourth quarter results. While the company surpassed financial expectations for the quarter, senior management cautioned that it would continue to face supply chain disruptions related to certain components.
CEO of Applied Materials, Inc. (NASDAQ:AMAT), Gary Dickerson, stated during the earnings call last week:
“We expect supply shortages of certain silicon components to persist in the near-term, and managing these constraints in partnership with our suppliers and chipmakers is our top priority.”
2. Warner Bros. Discovery, Inc. (NASDAQ:WBD)
Number of Hedge Fund Holders: 68
Shares of Warner Bros. Discovery, Inc. (NASDAQ:WBD) dropped about five percent this morning. The decline apparently came after the company postponed the roll out of HBO Max in India.
Warner Bros. Discovery, Inc. (NASDAQ:WBD) reportedly delayed the launch as a part of its broader strategy to save costs. Moreover, few news agencies reported that the company is planning to merge HBO Max and Discovery+ and introduce the combined streaming service in existing and new markets.
Meanwhile, Warner Bros. Discovery, Inc. (NASDAQ:WBD) premiered much-awaited “House of the Dragon” on HBO Max yesterday. However, many users experienced outages while trying to watch the prequel to the blockbuster show Game of Thrones.
1. Netflix, Inc. (NASDAQ:NFLX)
Number of Hedge Fund Holders: 95
Shares of Netflix, Inc. (NASDAQ:NFLX) fell nearly six percent this morning after receiving a downgrade from CFRA. The research firm cut its ratings for the video streaming giant from “Hold” to “Sell.”
CFRA analyst Kenneth Leon believes Netflix, Inc. (NASDAQ:NFLX) would likely underperform the S&P 500 Index in the second half of the year. Leon also cut his price target for the stock from $245 per share to $238 per share.
Separately, investment management firm Oakmark Funds also talked about Netflix, Inc. (NASDAQ:NFLX) in its second-quarter 2022 investor letter, stating:
“Netflix‘s stock price was down considerably after providing a weaker than expected outlook for both subscriber growth and profit margins. After meeting with management and scrutinizing our investment thesis, we lowered our estimate of business value to account for the company’s softer near-term guidance. However, we believe the decline in the company’s share price more than adjusts for this. Indeed, Netflix now trades for a discount to the S&P 500 Index on next year’s GAAP earnings despite our view that the company remains a much better than average business run by a highly accomplished management team. We believe the company’s lead in streaming remains intact and we expect terminal operating margins to be substantially higher than they are today. Furthermore, we are encouraged by Netflix’s potential to enhance revenue growth through advertising, the monetization of password sharing and further penetrating international markets.”
You can also take a peek at Top Ten Semiconductor ETFs to Buy in 2022 and 10 Best Cyclical Stocks for Inflation.
