In this article, we discuss the 5 stocks that analysts recommend buying despite their earnings miss. If you want to read about some more stocks that analysts recommend buying, go directly to Analysts Say Buy These 10 Stocks Despite Earnings Miss.
5. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 66
Airbnb, Inc. (NASDAQ:ABNB) operates an online travel platform. The company reported earnings for the second quarter of 2022 on August 2, posting earnings per share of $0.56, beating analyst expectations by $0.13. The revenue over the period was $2.1 billion, up more than 56% compared to the revenue over the same period last year but missing market estimates by $10 million. The company also announced a share repurchase program worth around $2 billion.
On August 3, Needham analyst Bernie McTernan maintained a Buy rating on Airbnb, Inc. (NASDAQ:ABNB) stock and lowered the price target to $150 from $220, noting the earnings of the firm allowed for continued investment for growth and authorization of a buyback.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Airbnb, Inc. (NASDAQ:ABNB), with 3.3 million shares worth more than $575 million.
In its Q3 2021 investor letter, Tollymore Investment Partners, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ:ABNB) was one of them. Here is what the fund said:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Airbnb, Inc. (NASDAQ:ABNB) broke the link between staying in residential property and owning it. Airbnb, Inc. (NASDAQ:ABNB) is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
4. Shopify Inc. (NYSE:SHOP)
Number of Hedge Fund Holders: 72
Shopify Inc. (NYSE:SHOP) provides a commerce platform and related services. In late July, the firm posted earnings for the second quarter of 2022, reporting a loss per share of $0.03 and a revenue of $1.3 billion. The revenue was up more than 17% compared to the revenue over the same period last year but missed analyst expectations by $30 million. On July 27, Jefferies analyst Samad Samana maintained a Buy rating on Shopify Inc. (NYSE:SHOP) stock and lowered the price target to $40 from $47.5.
At the end of the first quarter of 2022, 72 hedge funds in the database of Insider Monkey held stakes worth $5.7 billion in Shopify Inc. (NYSE:SHOP), compared to 86 in the preceding quarter worth $12 billion.
In its Q1 2022 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Shopify Inc. (NYSE:SHOP) was one of them. Here is what the fund said:
“We added to the Portfolio’s position in e-commerce company Shopify Inc. (NYSE:SHOP) in the first quarter after a sharp share-price decline. This brought the Portfolio’s weighting in the company to 2%. We believe Shopify provides a uniquely positioned platform, and we like the company’s strategy of continuing to invest in its business in an effort to strengthen its competitive advantages. The market’s affinity for businesses like Shopify Inc. (NYSE:SHOP) may have changed, which created an opportunity for us to build our position in the company at what we believed to be compelling valuations.”
3. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 99
Booking Holdings Inc. (NASDAQ:BKNG) provides online reservation services. In early August, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $19.08 and a revenue of $4.3 billion. The revenue was up more than 99% compared to the revenue over the same period last year but missed analyst expectations by $50 million. The firm revealed that gross travel bookings raked in around $34 billion in revenue.
On August 4, Deutsche Bank analyst Lee Horowitz maintained a Buy rating on Booking Holdings Inc. (NASDAQ:BKNG) stock and lowered the price target to $2,280 from $2,300, noting that the second quarter results of the firm showcased the strength of the pandemic recovery.
At the end of the first quarter of 2022, 99 hedge funds in the database of Insider Monkey held stakes worth $7.5 billion in Booking Holdings Inc. (NASDAQ:BKNG), compared to 92 in the previous quarter worth $7.7 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Booking Holdings Inc. (NASDAQ:BKNG) was one of them. Here is what the fund said:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year, for example, in positioning the portfolio to benefit from a flush consumer eager to return to spending and traveling. New positions included Booking Holdings Inc. (NASDAQ:BKNG), an online travel agency with industry-leading margins and a dominant footprint in Europe.”
2. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 160
Alphabet Inc. (NASDAQ:GOOG) is a diversified technology company. On July 26, the company posted earnings for the second quarter of 2022, reporting earnings per share of $1.21, beating market estimates by $0.06. The revenue over the period was $69 billion, up more than 12% compared to the revenue over the same period last year and missing market expectations by $110 million. The revenue from Google Search and other mediums was more than $40 billion, per the tech giant.
On August 3, Tigress Financial analyst Ivan Feinseth maintained a Strong Buy rating on Alphabet Inc. (NASDAQ:GOOG) stock and raised the price target to $186 from $183, noting the resilience of the core cloud and search business of the firm amid macro headwinds.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ:GOOG), with 2.3 million shares worth more than $6.6 billion.
In its Q2 2022 investor letter, Wedgewood Partners, an asset management firm, highlighted a few stocks and Alphabet Inc. (NASDAQ:GOOG) was one of them. Here is what the fund said:
“Alphabet Inc. (NASDAQ:GOOG) grew its core search revenues +24% on a +30% year-ago comparison. Despite this stellar top-line performance, shares sold off as the market began to discount fears of a recession. However, the stock has outperformed relative to other holdings as core Google Search has been less affected by disruptions related to Apple’s privacy initiatives. Alphabet’s Cloud segment is generating revenue at a $24 billion run rate but is still running at a loss. We think this business can generate much better margins at some point. In the meantime, the Company has 4% to 5% of shares authorized for repurchase which is an attractive use of capital as the stock trades for about just 18X 2023 consensus estimates.”
1. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 200
Meta Platforms, Inc. (NASDAQ:META) is a tech firm that owns and runs social media platforms. On July 27, the company posted earnings for the second quarter of 2022, reporting earnings per share of $2.46, missing market estimates by $0.09. The revenue over the period was $28.8 billion, down close to 1% compared to the revenue over the same period last year and missing analyst expectations by $130 million. The monthly active users on the Facebook platform were 2.93 billion as of June 30, an increase of 1% year-over-year.
On July 28, MKM Partners analyst Rohit Kulkarni maintained a Buy rating on Meta Platforms, Inc. (NASDAQ:META) stock and lowered the price target to $240 from $295, predicting that the shares would remain range-bound in the coming months.
At the end of the first quarter of 2022, 224 hedge funds in the database of Insider Monkey held stakes worth $19 billion in Meta Platforms, Inc. (NASDAQ:META), compared to 248 in the preceding quarter worth $31 billion.
In its Q4 2021 investor letter, Boyar Value Group, an asset management firm, highlighted a few stocks and Meta Platforms, Inc. (NASDAQ:META) was one of them. Here is what the fund said:
“Corporate executives can have many different reasons for selling shares (anticipation of tax law changes, philanthropy, diversification, and much more), but the sheer number of billionaire founders who sold shares in 2021 should raise eyebrows and might well be signaling a market top. Bloomberg’s Ben Steverman and Scott Carpenter report not only that Mark Zuckerberg of Meta Platforms, Inc. (NASDAQ:META) (formerly known as Facebook) sold shares in his company almost every day last year but also that the founders of Google sold ~$3.5 billion worth of stock (the first time either Sergey Brin or Larry Page has sold shares since 2017).”
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