In this article, we discuss the 5 trending stocks to watch today. If you want to see some more companies on the list, go directly to 10 Trending Stocks to Watch Today.
5. AT&T Inc. (NYSE:T)
Number of Hedge Fund Holders: 55
Shares of AT&T Inc. (NYSE:T) rose over two percent on Monday morning after Raymond James upgraded the telecommunications giant from “Outperform” to “Strong Buy.” The research firm sees AT&T outperforming Verizon in the coming months.
Raymond James’ coverage came just days after AT&T Inc. (NYSE:T) posted better-than-expected profit for the third quarter and lifted its outlook for the full year. The results were driven by price hikes and global travel recovery during the quarter.
AT&T Inc. (NYSE:T) reported adjusted earnings of 68 cents per share, topping expectations of 61 cents. The quarterly revenue of $30 billion also exceeded the consensus of $29.85 billion.
For the full year, AT&T Inc. (NYSE:T) expects adjusted earnings of $2.50 per share or higher, compared to its previous projection between $2.42 – $2.46 per share.
Separately, asset management firm Chartwell Investment Partners briefly discussed AT&T Inc. (NYSE:T) in its second-quarter 2022 investor letter, stating:
“In the Dividend Equity accounts, the three best performers in Q2 includes AT&T (NYSE:T, 2.5%), up 17.1%. AT&T completed the spin of the WarnerMedia business (HBO, CNN, etc.), and the market seemed to like the “back-to-basics” approach. Also, the telco business is expected to do relatively well in an inflationary environment.”
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 72
Shares of Tesla, Inc. (NASDAQ:TSLA) fell to a new 52-week low this morning after the electric vehicle (EV) giant lowered the prices of some models in China.
Tesla, Inc. (NASDAQ:TSLA) decreased the initial price of Model 3 sedan to 265,900 yuan, from its previous price of 279,900 yuan. Moreover, its Model Y SUV will now carry a price tag of 288,900 yuan, versus its earlier selling price of 316,900 yuan.
Some industry experts are attributing the latest move to intensifying competition in China. Tesla, Inc. (NASDAQ:TSLA) is reportedly facing increasing competition from local players, such as BYD and Xpeng, in the world’s largest automotive market.
3. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is next on the list of 5 trending stocks to watch today. TSM stock plunged to a new 52-week low this morning following reports that the company has stopped shipping advanced silicon to Chinese intelligent chip design firm Biren Technology.
The reports suggest that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) wants to abide by recent U.S. regulations preventing exports of advanced chip technology to China.
Meanwhile, a separate report from Wall Street indicates that Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) might plan to build a manufacturing facility in Japan amid rising tensions between Washington and Beijing.
2. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Shares of Alibaba Group Holding Limited (NYSE:BABA) plummeted to a nearly seven-year low on Monday morning. The drop came a day after Chinese President Xi Jinping was named party chief for a third term.
Besides Alibaba Group Holding Limited (NYSE:BABA), shares of NIO, JD.com and XPeng also dropped this morning. The latest selloff shows investors’ concerns related to Xi’s tightening policies around the Chinese tech sector.
Meanwhile, Xi’s zero-Covid strategy has also hampered the growth of several Chinese companies, including Alibaba Group Holding Limited (NYSE:BABA). Shares of Alibaba have already lost about 50 percent of their value so far in 2022.
Separately, investment management firm Mawer Investment Management also mentioned Alibaba Group Holding Limited (NYSE:BABA) in its third-quarter 2022 investor letter, stating:
“Other companies that have seen declines include those that have been impacted by macroeconomic uncertainty in China. Both Alibaba (NYSE:BABA) and Tencent (OTCPK:TCEHY) have reported results that are negative fundamentally, and while both have been under pressure from new competition, the recent results are also a reflection of the economic state in China.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 184
Meta Platforms, Inc. (NASDAQ:META) came into the spotlight this morning after BofA lowered its ratings for the social network giant from “Buy” to “Neutral,” citing weak sales growth for Q4 and fiscal 2023. The research firm also slashed its price target for META stock from $196 per share to $150 per share.
The downgrade came just before the company’s Q3 results. Meta Platforms, Inc. (NASDAQ:META) is scheduled to report its third-quarter profit and sales after the closing bell on Wednesday.
Meanwhile, investment firm Altimeter Capital Management urged Meta Platforms, Inc. (NASDAQ:META) to trim jobs and reduce capital costs. The technology-focused hedge fund gave these suggestions in an open letter to CEO Mark Zuckerberg.
You can also take a peek at Long-Term Stock Portfolio: Best Tech Stocks and 13 Best Cybersecurity Stocks To Buy.
