In this article, we discuss 5 stocks that analysts are cutting price targets of. If you want to see some more stocks that analysts slashed the price targets of, click Analysts Are Cutting Price Targets Of These 10 Stocks.
5. Coupa Software Incorporated (NASDAQ:COUP)
Number of Hedge Fund Holders: 59
Headquartered in San Mateo, California, Coupa Software Incorporated (NASDAQ:COUP) operates a cloud-based business spend management platform. Elite hedge funds hold large stakes in Coupa Software Incorporated (NASDAQ:COUP). In Q4 2021, 59 hedge funds were bullish on the stock, up from 52 funds in the last quarter.
On March 14, shares of Coupa Software Incorporated (NASDAQ:COUP) tanked 28.5% post-market in lieu of the company’s 2023 guidance, which missed Wall Street consensus majorly, although Coupa Software Incorporated (NASDAQ:COUP) reported better-than-expected Q4 results. The company provided an estimate for the 2023 non-GAAP EPS of $0.15-$0.19, way lower than the market consensus of $0.73. Similarly, total revenue in 2023 is expected to range between $836 million to $840 million, compared to a consensus estimate of $878.89 million.
UBS analyst Taylor McGinnis lowered the price target on Coupa Software Incorporated (NASDAQ:COUP) on March 17 to $105 from $130 and kept a Neutral rating on the shares. The analyst observed that Coupa Software Incorporated (NASDAQ:COUP)’s Q4 results and FY23 outlook was below expectations on most key metrics. However, the growth guidance for billions in Q1 2022 was 18% stronger, which is a positive indicator for Coupa Software Incorporated (NASDAQ:COUP).
Among the hedge funds tracked by Insider Monkey at the end of December 2021, billionaire Andreas Halvorsen’s Viking Global is the leading shareholder of Coupa Software Incorporated (NASDAQ:COUP), with more than 4 million shares worth $658.75 million.
Here is what ClearBridge Investments has to say about Coupa Software Incorporated (NASDAQ:COUP) in its Q2 2021 investor letter:
“Within IT, we added positions in Coupa Software, a leader in the fast growing Business Spend Management market with opportunity to double its total addressable market by harnessing B2B payments with its Coupa Pay product; and AppLovin, a leading mobile gaming advertising network in a unique position to utilize its ad expertise to grow its own mobile game business at low user acquisition costs.”
4. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 61
Roblox Corporation (NYSE:RBLX) provides an online entertainment platform, providing 3D gaming and social experiences for users. Elite hedge funds were extremely bullish on Roblox Corporation (NYSE:RBLX). At the end of December 2021, 61 hedge funds held stakes in Roblox Corporation (NYSE:RBLX), up from 50 funds in the previous quarter.
Roblox Corporation (NYSE:RBLX) published its Q4 earnings on February 15, posting a loss per share of $0.25, missing market consensus by $0.13. The company’s revenue for the fourth quarter came in at $770.12 million, below Street estimates by $5.88 million.
On March 17, Stifel analyst Drew Crum trimmed the price target on Roblox Corporation (NYSE:RBLX) to $65 from $90 and kept a Buy rating on the shares, declaring the company’s February KPIs as “mixed.” However, the analyst told investors that he expects improved bookings in late Q2 through the second half of the year, and the reward/risk is “better to the upside” with the pullback in the shares.
According to the Q4 database of Insider Monkey, Renaissance Technologies is the leading shareholder of Roblox Corporation (NYSE:RBLX), owning 5.3 million shares worth $557 million.
Here is what Guardian Fund has to say about Roblox Corporation (NYSE:RBLX) in its Q2 2021 investor letter:
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
3. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 67
JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce retailer that provides online marketplace services for third-party merchants and omni-channel solutions to customers and offline retailers.
In the fourth quarter of 2021, 67 funds reported owning stakes in JD.com, Inc. (NASDAQ:JD), up from 66 funds in the earlier quarter. The total stakes held in JD.com, Inc. (NASDAQ:JD) during Q4 2021 were $8.75 billion. Tiger Global Management owned the biggest position in the company, with 53.7 million shares worth $3.76 billion.
On March 10, JD.com, Inc. (NASDAQ:JD)’s Q4 results went live, and the company announced a GAAP loss per share of $0.53, missing consensus estimates by $0.63. Revenue over the period jumped 26.33% year on year to $43.64 billion, surpassing analysts’ predictions by $300.75 million.
JPMorgan analyst Andre Chang on March 14 double downgraded JD.com, Inc. (NASDAQ:JD) to Underweight from Overweight with a price target of $35, down from $100, observing that the sector-wide selloff of Chinese securities might continue without valuation support in the near-term. The analyst named Chinese internet stocks including JD.com, Inc. (NASDAQ:JD) “uninvestable” over the next six months to one year, citing increasing risk for downward revisions owing to the tougher macro environment.
Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:
“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
2. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders: 94
Adobe Inc. (NASDAQ:ADBE) is a California-based software company that promotes content creation via cloud-based document services and creative products. In Q4 2021, 94 hedge funds were bullish on Adobe Inc. (NASDAQ:ADBE), compared to 95 funds in the prior quarter. The total stakes held by elite funds in Q4 exceeded $10 billion.
On March 18, Jefferies analyst Brent Thill reduced the price target on Adobe Inc. (NASDAQ:ADBE) to $550 from $680 and kept a Buy rating on the shares ahead of the fiscal Q1 results. According to the analyst, Adobe Inc. (NASDAQ:ADBE) currently faces several near-term headwinds, such as slowing GDP, the strong U.S. currency, the Ukraine-Russia war, and competitors such as Canva. However, he thinks that most of these headwinds have been absorbed by the shares, as is evident from the 22% decline year-to-date.
According to the Q4 database of Insider Monkey, Fisher Asset Management is the biggest shareholder of the company, with 6.7 million shares worth $3.8 billion.
Here is what Richie Capital Group has to say about Adobe Inc. (NASDAQ:ADBE) in its Q2 2021 investor letter:
“Adobe Systems (ADBE – up 24.8%) – In the last 15 years, Adobe has transformed itself into a software behemoth, more than tripling its revenue since 2010. The company is famous for its namesake PDF-reader and photo-editing software Photoshop. However, ADBE sells a full suite of software products through a recurring subscription model. The company transitioned from selling boxed software to recurring subscriptions in 2013 and revenues have grown consistently since. The company achieved $13B in revenue in 2020 with 88% Gross Margins.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is an American multinational entertainment corporation that specializes in the distribution and production of television content, gaming studios, broadcasting media, streaming platforms, and recreational experiences. Amid the Ukraine crisis, The Walt Disney Company (NYSE:DIS) suspended its services across Russia.
On March 17, Truist analyst Matthew Thornton lowered the price target on The Walt Disney Company (NYSE:DIS) to $160 from $200 and kept a Buy rating on the shares. The analyst noted that consensus subscribers for Q1 2022 are very reasonable, although the last week of March must be observed carefully for any last minute developments. He believes that new market launches over the next several quarters will offer continued recovery in Parks and Box Office.
Among the hedge funds tracked by Insider Monkey in the fourth quarter of 2021, 111 funds were bullish on The Walt Disney Company (NYSE:DIS), up from 101 funds in the earlier quarter. Philippe Laffont’s Coatue Management is a leading shareholder of the company, with 5.7 million shares worth approximately $898 million.
Here is what Artisan Value Fund has to say about The Walt Disney Company (NYSE:DIS) in its Q4 2021 investor letter:
“Disney is a global leader in media, has one of the best brands in the world with timeless intellectual property (IP) and a unique business model that allows it to monetize its IP through movies, TV, theme parks, toys and licensing. The company’s scale in IP, stable of powerful brands, including Disney, Pixar, Marvel and Star Wars, and global reach is unmatched, creating an enduring franchise. Disney also has a unique culture which is extremely customer centric and appealing to employees. The company is an engaging workplace too, making Disney an attractive home for top talent. The stock has recently been out of favor as COVID has negatively impacted multiple business lines: theme parks, movies, sporting events and media production. Also, growth in its Disney+ direct-to-consumer business has slowed amid a lull in new content and natural maturation after strong early subscriber growth. Disney doesn’t look cheap today due to COVID’s effect on current earnings; however, we believe a recovery in its theme parks business and an ability to monetize its IP vault sets it up to sustain earnings growth over the long run. Disney has also proven the business is financed well despite the toughest financial conditions in the company’s 100-year history. Even with the ill-timed purchase of 21st Century Fox in 2019 creating elevated leverage, the company remains well capitalized, and interest coverage is still strong.”
You can also take a look at 10 ETFs to Buy and Hold for the Next 10 Years and 10 Dividend Stocks Redditors Buy for Early Retirement.
