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Analysts Are Downgrading These 10 Stocks

In this article, we will look at the 10 stocks recently downgraded by analysts. If you want to see more such downgrades on the list, you can directly visit Analysts Are Downgrading These 5 Stocks.

U.S. stocks mostly traded in red this month amid investors’ concerns over future rate hikes. Moreover, the producer price index for the month of November was higher than expected. Wholesale prices rose 0.3 percent last month, above the consensus forecast for a 0.2 percent gain. Investors now fear that the Fed would likely keep the interest rates higher to bring down inflation.

Meanwhile, the changing macro environment compelled analysts to revise their ratings for several stocks. Salesforce, Inc. (NYSE:CRM), Shopify Inc. (NYSE:SHOP) and Mondelez International, Inc. (NASDAQ:MDLZ), were among the notable companies that were recently downgraded by analysts on macro hurdles.

In addition, online lodging marketplace Airbnb, Inc. (NASDAQ:ABNB) and Florida-based cruise line Royal Caribbean Cruises Ltd. (NYSE:RCL), also received downgrades from analysts. Check out the complete article to find the details of these downgrades.

Source: pexels

10. The Boston Beer Company, Inc. (NYSE:SAM)

Number of Hedge Fund Holders: 18

Deutsche Bank turned bearish on The Boston Beer Company, Inc. (NYSE:SAM) on Tuesday, December 6. The research firm downgraded the high-end alcoholic beverage company from “Hold” to “Sell,” citing weakness in its core hard seltzer segment.

Analyst Steve Powers pointed towards dropping seltzer sales amid intensifying competition and increasing pressure on consumer spending. Powers expects Truly sales to drop in the low single digits next year due to these factors. In addition, the analyst expects rising costs to weigh on the profitability of The Boston Beer Company, Inc. (NYSE:SAM).

Separately, investment management firm Artisan Partners also discussed Boston Beer’s hard seltzer business in its third-quarter 2022 investor letter. Here’s what the firm said about The Boston Beer Company, Inc. (NYSE:SAM):

“We ended our campaigns in Boston Beer Company. Boston Beer Company sells a focused portfolio of alcoholic beverage brands. In recent years, the company has emerged as one of the leaders in the hard seltzer category, which has grown over 150% in each of the past three years (2018-2020). Boston Beer’s Truly brand, the second-largest seller of hard seltzer, has benefited from this growth and was core to our investment thesis. However, the hard seltzer category’s growth has recently slowed to single digits, falling short of high investor expectations and pressuring Boston Beer’s earnings upside. Truly’s growth was core to our investment thesis, and a recovery is uncertain; thus, we ended our investment campaign.”

9. Tripadvisor, Inc. (NASDAQ:TRIP)

Number of Hedge Fund Holders: 33

Wolfe Research lowered its ratings for Tripadvisor, Inc. (NASDAQ:TRIP) from “Peer Perform” to “Underperform” on Wednesday, November 7. The research firm pointed towards weakness in travel demand.

Analyst Deepak Mathivanan believes travel demand would likely moderate amid the weakening macroeconomic environment in the coming quarters. Mathivanan added that the consensus expectations do not truly reflect the actual situation.

The analyst also thinks the company’s core auction marketplace could face challenges when demand drops in fiscal 2023. In addition, Mathivanan also cut his ratings for the online travel sector, which includes Tripadvisor, Inc. (NASDAQ:TRIP), from “Market Weight” to “Market Underweight.”

8. Unity Software Inc. (NYSE:U)

Number of Hedge Fund Holders: 34

Unity Software Inc. (NYSE:U) is best known for its software solutions used by developers for designing games and other content for mobile and PCs. The company recently received a downgrade from BTIG.

The research firm cut its ratings for Unity Software Inc. (NYSE:U) from “Buy” to “Neutral” on Thursday, December 8. Analyst Clark Lampen expects potential pressure on the mobile gaming market to persist over the next couple of years. Lampen also referred to near-term deterioration risk and longer-than-expected recovery of the global mobile gaming market.

Unity Software Inc. (NYSE:U) has struggled to gain value so far in 2022. The stock has lost more than 70 percent of its value on a year-to-date basis.

7. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Number of Hedge Fund Holders: 42

JPMorgan lowered its ratings for Royal Caribbean Cruises Ltd. (NYSE:RCL) from “Overweight” to “Underweight” on Tuesday, December 6. Analyst Daniel Adam believes that the Florida-based cruise line could face a funding shortfall of around $400 million by the end of 2023.

Adam added that the company would likely need to raise additional capital of $3.5 billion through an asset or equity sale that would be dilutive to shareholders. He cut his price target for Royal Caribbean Cruises Ltd. (NYSE:RCL) from $106 per share to $47 per share.

Besides Royal Caribbean Cruises Ltd. (NYSE:RCL), analysts also recently trimmed their ratings for Salesforce, Inc. (NYSE:CRM), Shopify Inc. (NYSE:SHOP) and Mondelez International, Inc. (NASDAQ:MDLZ).

6. Carvana Co. (NYSE:CVNA)

Number of Hedge Fund Holders: 43

Wedbush analyst Seth Basham cut his ratings for Carvana Co. (NYSE:CVNA) from “Neutral” to “Underperform” on Wednesday, December 7. Basham also reduced his price target for the used car retailer to $1 per share, sharply down from $9 per share.

The downgrade came after multiple reports suggested that Carvana Co. (NYSE:CVNA) might be headed towards bankruptcy. Carvana shares tumbled more than 42 percent on December 7 following the reports.

Used vehicle prices have declined in recent months as rising interest rates have impacted the purchasing power of potential buyers. The affordability factor has been weighing on the growth of Carvana Co. (NYSE:CVNA), which has plummeted nearly 100 percent on a year-to-date basis, including the latest drop.

Click to continue reading and see Analysts Are Downgrading These 5 Stocks.

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Disclosure: None. Analysts Are Downgrading These 10 Stocks is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…