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Analysts Are Downgrading These 10 Stocks

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

Notable companies from the communication services sector, including Meta Platforms, Inc. (NASDAQ:META), Snap Inc. (NYSE:SNAP) and Match Group, Inc. (NASDAQ:MTCH), recently posted financial results for their respective quarters.

Meta Platforms, Inc. (NASDAQ:META) and Match Group, Inc. (NASDAQ:MTCH) missed earnings expectations for their respective quarters. On the other hand, Snap Inc. (NYSE:SNAP) beat profit estimates but issued a gloomy outlook for the current quarter.

Subsequently, analysts trimmed their ratings for Meta Platforms, Inc. (NASDAQ:META), Snap Inc. (NYSE:SNAP) and Match Group, Inc. (NASDAQ:MTCH), after their recent earnings.

HSBC downgraded Meta Platforms, Inc. (NASDAQ:META) from “Hold” to “Reduce,” citing macroeconomic and regulatory headwinds. In addition, the research firm also pointed towards lower sales numbers. Check out the complete article to see some other stocks recently downgraded by analysts.

photo by scott graham on Unsplash

10. Atlas Technical Consultants, Inc. (NASDAQ:ATCX)

Number of Hedge Fund Holders: 6

Lake Street lowered its ratings for Atlas Technical Consultants, Inc. (NASDAQ:ATCX) from “Buy” to “Hold” on Wednesday, February 1. The downgrade came a day after private investment firm GI Partners decided to acquire Atlas Technical.

GI Partners has inked an agreement to buy Atlas Technical Consultants, Inc. (NASDAQ:ATCX) for roughly $1.05 billion. The offer price represented a hefty premium of about 125 percent from Atlas stock’s closing price on January 30.

The two companies expect the deal to close in the second quarter. Atlas’ board has already authorized the deal. However, its shareholders have yet to vote in favor of the agreement. Atlas Technical Consultants, Inc. (NASDAQ:ATCX) shares will stop trading on Nasdaq once the deal is closed.

9. Focus Financial Partners Inc. (NASDAQ:FOCS)

Number of Hedge Fund Holders: 20

Focus Financial Partners Inc. (NASDAQ:FOCS) received a downgrade from BMO Capital on Thursday, February 2. Analyst James Fotheringham reduced his ratings for the wealth management services provider from “Outperform” to “Market Perform,” citing a recent buyout proposal from Clayton, Dubilier & Rice (CD&R).

Fotheringham added that the potential agreement is exclusive in nature, and no counterbid is expected. The analyst also slashed his ratings for Focus Financial Partners Inc. (NASDAQ:FOCS) from $55 per share to $53 per share.

CD&R plans to buy Focus Financial Partners Inc. (NASDAQ:FOCS) in a cash transaction valued at $53 per share. The two companies are currently negotiating the terms of the agreement. Focus Financial shares jumped more than 8 percent on Thursday, February 2, following the development.

8. Digital Turbine, Inc. (NASDAQ:APPS)

Number of Hedge Fund Holders: 24

B. Riley downgraded Digital Turbine, Inc. (NASDAQ:APPS) from “Buy” to “Neutral” on Wednesday, February 1. Analyst Daniel Day thinks the company will face headwinds amid ongoing weakness in the app economy, particularly within its core segments, including mobile gaming and social media.

Day also cut his price target for Digital Turbine, Inc. (NASDAQ:APPS) from $20 per share to $16 per share, citing a downside risk to the consensus forecast through fiscal 2024.

The downgrade came just days before the company’s third-quarter results. Digital Turbine, Inc. (NASDAQ:APPS) is set to release its fiscal Q3 results after the market closes on February 8.

7. Sysco Corporation (NYSE:SYY)

Number of Hedge Fund Holders: 40

Sysco Corporation (NYSE:SYY) recently announced its fiscal second-quarter results. The food products distributor posted sales of $18.59 billion, representing a growth of 13.9 percent on a year-over-year basis and in line with expectations.

On the downside, Sysco Corporation (NYSE:SYY) reported adjusted earnings of 80 cents per share, up from 57 cents per share in the year-ago period but below analysts’ average estimate of 84 cents.

Subsequently, Argus analyst John Staszak cut his ratings for Sysco Corporation (NYSE:SYY) after the latest earnings miss. Staszak also reduced his fiscal 2023 earnings estimates to reflect the increasing product and labor costs in the coming quarters.

Like Sysco Corporation (NYSE:SYY), analysts also trimmed their ratings for Meta Platforms, Inc. (NASDAQ:META), Snap Inc. (NYSE:SNAP) and Match Group, Inc. (NASDAQ:MTCH).

6. Electronic Arts Inc. (NASDAQ:EA)

Number of Hedge Fund Holders: 42

BofA downgraded Electronic Arts Inc. (NASDAQ:EA) from “Buy” to “Neutral” on Wednesday, February 1, citing the company’s Q3 earnings miss and disappointing growth outlook.

Electronic Arts Inc. (NASDAQ:EA) recently posted earnings of 73 cents per share for its fiscal third quarter, missing the consensus of $3.05 with a big margin. In addition, net bookings for the quarter came in at $2.34 billion, while analysts were looking for $2.51 billion.

For the March quarter, Electronic Arts Inc. (NASDAQ:EA) projected adjusted revenue in the range of $1.68 – $1.78 billion, below analysts’ average estimate of $2.23 billion. EA stock fell more than nine percent on February 1 following the results.

Speaking on the results, CFO Chris Suh said in a statement:

“As market uncertainty mounted during the quarter, we took measures to protect underlying profitability. We are prioritizing the player experience, directing investment to where it can have the most positive impact for our players and on growth.”

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.

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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.

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

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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…